nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2019‒09‒16
three papers chosen by

  2. The Relationship between Financial Inclusion and Monetary Policy Transmission: The Case of Egypt By Marwa Elsherif
  3. Measuring Economic Competence of Secondary School Students in Germany By Kaiser, Tim; Oberrauch, Luis; Seeber, Günther

  1. By: Charu Bhurat (SVKM?s NMIMS Anil Surendra Modi School of Commerce)
    Abstract: Financial inclusion means providing access to financial services at affordable cost to all individuals and businesses especially to the vulnerable and weaker income groups. This paper aims to examine the concept of financial inclusion and its relevance with respect to the world?s emerging economies Brazil, Russian Federation, India, China and South Africa (BRICS). The BRICS nations have been the growth drivers of the world economy and higher financial inclusion means a better level of socio-economic development. Various financial inclusion indicators from The Global Partnership for Financial Inclusion (GPFI) have been used to compare data of these countries. With the help of this paper, an attempt has been made to analyse the state of financial inclusion and digital financial services amongst BRICS nations. Also, the BRICS nations have been compared in terms of income as well as gender disparity for various financial inclusion indicators.
    Keywords: BRICS, Financial inclusion, digital transactions, banking
    JEL: E02 E44 F33
    Date: 2019–06
  2. By: Marwa Elsherif (Helwan University and Arab Academy for Science, Technology and Maritime Transport)
    Abstract: Financial Inclusion is critical for the competitiveness, employment creation, and for raising incomes and reducing poverty. There is limited literature investigating the specific relationship between financial inclusion and monetary policy transmission. Central bank of Egypt (CBE) has launched three initiatives to support development and achievement of financial inclusion. They include an initiative to support financing small- and medium-sized enterprises (SMEs), another to support the tourism sector, in addition to a real estate financing initiative for medium- and low-income individuals. To explore the relationship between financial inclusion and monetary policy transmission in Egypt for the period of 2000 to 2017, it is proposed to use the principal component analysis (PCA) method to assign the weight of factors in financial inclusion index (by comprising selected indicators of financial development in a single index). And VECM approach to examine financial inclusion and monetary policy transmission, Granger Causality tests, and basic trend analyses, to explore empirically the relationship between financial inclusion indicators and monetary policy. The paper is arranged in sections. After the introduction, section II presents literature survey on links between financial inclusion and the goals of monetary policy, and presents stylized facts about financial inclusion in Egypt. Section III discusses the methodology of analysis. In section IV, results of econometric estimations are presented. Section V summarizes the paper with policy implications.
    Keywords: Financial Inclusion, Monetary Policy, VECM, Granger Causality Test
    JEL: E52 G18 C32
    Date: 2019–06
  3. By: Kaiser, Tim; Oberrauch, Luis; Seeber, Günther
    Abstract: We introduce a test of economic competence for German-speaking secondary school students and provide evidence from a large-scale assessment with 6,230 students from grades seven to ten. The article presents the development and psychometric properties of the scale, as well as an investigation of predictors of economic competence. We find evidence of a gender gap favoring male students, lower scores for students with a migration background, and parents’ socioeconomic background being a predictor of test performance. Additionally, we document sizeable differences between tracks, as well as gains in economic competence across grades in the order of magnitude of 0.06 to 0.2 standard deviations per year. The article concludes with perspectives on an impact evaluation of a curriculum reform introducing mandatory economic education in secondary school.
    Keywords: economic competence,economic literacy,item response theory,school economics
    JEL: A21
    Date: 2019

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