nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2017‒09‒10
three papers chosen by

  1. Improving financial access in Africa: insights from information sharing and financial sector development By Simplice Asongu
  3. Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence By Antonia Grohmann; Theres Klühs; Lukas Menkhoff

  1. By: Simplice Asongu (Yaoundé/Cameroun)
    Abstract: The study investigates interactions between information sharing offices, the coexistence of financial sub-systems and financial access. The empirical evidence is based on Quantile regressions in order to articulate countries with low, intermediate and high levels of financial access. The scope of the study is on 53 African countries for the period 2004-2011. The following main results are established. First, the positive association between “information sharing offices (ISOs)” and “formal financial sector development” consistently increases with improvements in initial levels of credit access. Second, the negative linkage between ISOs and “informal financial sector development” consistently decreases with increasing levels of credit access. In summary, we establish that the positive complementarity of ISOs and financial formalization is an increasing function of financial activity (or access to credit) whereas the negative complementarity of ISOs and financial informalization is a decreasing function of financial activity.
    Keywords: Information Asymmetry; Financialization; Financial Access
    JEL: G20 G29 L96 O40 O55
    Date: 2017–07
  2. By: Imanzade, Afgan; Zeynalov, Anar; Hasanov, Seymur
    Abstract: The main goal of the research is to study what financial inclusion is and analyse its current status in the Azerbaijani economy. To that end, the monography analyses infrastructural elements to be shaped to make financial resources and services available, and the potential to deepen financial inclusion, researches international practice with respect to elements of financial infrastructure affecting stronger financial inclusion and includes case studies. The study also analyses the status of financial inclusion in the Republic of Azerbaijan as part of measuring financial inclusion and issues proposals on the actions to be taken.
    Keywords: access to finance,financial inclusion
    JEL: K20 G21 G30
    Date: 2017
  3. By: Antonia Grohmann; Theres Klühs; Lukas Menkhoff
    Abstract: While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional variation. Regarding “access to finance”, financial infrastructure and financial literacy are mainly substitutes. However, regarding the “use of financial services”, the effect of higher financial literacy strengthens the effect of more financial depth. The causal interpretation of these results is supported by IV-regressions. Moreover, the positive impact of financial literacy holds across income levels and several subgroups within countries.
    Keywords: Financial inclusion, financial literacy, financial institutions, financial development
    JEL: O1 G2 D14
    Date: 2017

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