nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2021‒02‒01
six papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Financial Capability and Inclusion in Haiti By World Bank
  2. Do Remittances Enhance Financial Inclusion in LMICs and in Fragile States? By Sami Ben Naceur; Ralph Chami; Mohamed Trabelsi
  3. Drivers of Financial Access: the Role of Macroprudential Policies By Corinne Deléchat; Lama Kiyasseh; Margaux MacDonald; Rui Xu
  4. Implied cost of capital and mutual fund performance By Hendriock, Mario
  5. Household Over-Indebtedness in Russia By World Bank
  6. Moving Minds and Money: The Political Economy of Migrant Transfers By Martina Metzger; Jennifer Pédussel Wu

  1. By: World Bank
    Keywords: Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Banks & Banking Reform Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy Finance and Financial Sector Development - Financial Regulation & Supervision Finance and Financial Sector Development - Rural Finance Rural Development - Rural Microfinance and SMEs
    Date: 2019
  2. By: Sami Ben Naceur; Ralph Chami; Mohamed Trabelsi
    Abstract: This paper explores the relationship between remittances and financial inclusion for a sample of 187 countries over the period 2004-2015, using cross-country as well as dynamic panel GMM regressions. At low levels of remittances-to-GDP, these flows act as a substitute to formal financial channels, thereby reducing financial inclusion. In contrast, when remittance-to-GDP ratio is high, above 13% on average, they tend to complement formal access and usage channels, thus enhancing financial inclusion. This “U shaped” relationship highlights the role of remittance flows in financing household consumption at low levels, while raising formal household bank savings and allowing for more intermediation, at high levels of remittance-to-GDP.
    Keywords: Financial inclusion;Remittances;Financial services;Commercial banks;Financial sector development;WP,remittance inflow
    Date: 2020–05–22
  3. By: Corinne Deléchat; Lama Kiyasseh; Margaux MacDonald; Rui Xu
    Abstract: This study analyzes the drivers of the use of formal vs. informal financial services in emerging and developing countries using the 2017 Global FINDEX data. In particular, we investigate whether individuals’ choice of financial services correlates with macro-financial and macro-structural policies and conditions, in addition to individual and country characteristics. We start our analysis on middle and low-income countries, and then zoom in on sub-Saharan Africa, currently the region that most relies on informal financial services, and which has the largest uptake of mobile banking. We find robust evidence of an association between macroprudential policies and individuals’ choice of financial access after controlling for personal and country-level characteristics. In particular, macroprudential policies aimed at controlling credit supply seem to be associated with greater resort to informal financial services compared with formal, bank-based access. This highlights the importance for central bankers and financial sector regulators to consider the potential spillovers of monetary policy and financial stability measures on financial inclusion.
    Keywords: Financial services;Financial inclusion;Mobile banking;Macroprudential policy;Macroprudential policy instruments;WP,informal financial service
    Date: 2020–05–29
  4. By: Hendriock, Mario
    Abstract: This study provides evidence for a positive association between mutual fund holdings'implied cost of capital (ICC) and future performance. Consistent with large transactioncosts of ICC-based investments impeding their exploitation and employing a ICC-basedstrategy reflecting skill, family-level trading efficiency and manager-level SAT scorepositively correlate with fund-level ICC. A negative association between ICC and mid-year risk shifting corroborates the notion of fund managers decisively choosing andrelying on high-ICC strategies. Institutional investors able to identify funds with highICC direct their investments accordingly, whereas flows of retail funds are unaffected,consistent with limited investor attention and financial literacy.
    Keywords: implied cost of capital,mutual funds,portfolio choice,financial forecasting
    JEL: G11 G14 G17 G23 G31 M41
    Date: 2020
  5. By: World Bank
    Keywords: Finance and Financial Sector Development - Debt Markets Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy Macroeconomics and Economic Growth - Consumption
    Date: 2019
  6. By: Martina Metzger; Jennifer Pédussel Wu
    Abstract: This paper examines the potential of digital financial services (Fintech) to increase the development impact of remittances. We discuss both household and macroeconomic perspectives of the nexus of digital financial services, remittances, and financial inclusion. Using our findings, we identify regulatory gaps in dealing with digital financial services to enhance the development impact of remittances. Political and social remittances, as well as collective remittances, and the role of diaspora networks are also considered. We then examine the impact of the Covid-19 pandemic before elucidating major research questions in the political economy of migrant transfers.
    Date: 2020–12

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