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on Financial Literacy and Education |
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Issue of 2021‒09‒06
four papers chosen by |
| By: | Mahamat Ibrahim Ahmat Tidjani (UFHB - Université Félix Houphouët-Boigny) |
| Abstract: | This paper aims to explore the state of financial inclusion in Chad. Adopting a Multiple Correspondence Analysis (MCA) on a sample of 1000 individuals from the Global Findex (2017), the study measured the inclusiveness of financial systems in Chad through a Financial Inclusion Index (FII). Furthermore, it assessed the distribution of the FII using the factor decomposition of the Gini coefficient. The findings showed that the average FII was low, 24.89%, and it varied between 7.43% and 60.35%. Financial institution account, deposit, withdrawal, and debit card ownership were the most influential indicators of financial inclusion in Chad. Moreover, the paper revealed that, despite its low level, financial inclusion was not smoothly distributed among the Chadian population (Gini coefficient of 0.196). The analysis of the financial inclusion inequality profile showed that there was a persistent financial inclusion gender gap in Chad, exacerbated by discriminations in education and income. Thus, policy interventions should target the provision of formal accounts, a reduction of costs of financial services (withdrawal and debit cards), and promoting formal savings by developing adequate savings products, to foster financial inclusion in Chad. Furthermore, these policies should be gender-responsive while considering its interaction with education and income. |
| Keywords: | Financial inclusion index,multiple correspondence analysis,inequality decomposition,Chad |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03322905&r= |
| By: | Balakina, Olga (Aarhus University and Danish Finance Institute); Balasubramaniam, Vimal (Queen Mary University of London, and CEPR); Dimri, Aditi (University of Warwick); Sane, Renuka (National Institute of Public Finance and Policy) |
| Abstract: | We present a welfare framework to evaluate the market effects of financial education interventions. Using this framework, we assess a new product-specific rules of thumb-driven consumer financial education program provided just before purchase decisions. While our intervention improves knowledge and outcomes for newly educated consumers, it is a Pareto-improvement only under a narrow set of conditions, as are other interventions in the literature. Our findings suggest that positive treatment effects for a small fraction of consumers may come at the cost of other uninformed consumers in retail financial markets, making positive effects necessary but not sufficient to adopt financial education policies. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:21/344&r= |
| By: | Nizam, Ahmed Mehedi |
| Abstract: | With the rapid proliferation of mobile telephony and the establishment of an IT-enabled payment and settlement system, Bangladesh, nowadays, is experiencing a meteoric rise in the usage of mobile financial services (MFS). As more and more people are opting to use this service, a huge number of mobile accounts are opened every day and a substantial amount of money is deposited, withdrawn and transferred frequently through the mobile network. This ever-increasing amount of mobile money flowing through the network may have a sizeable impact on the overall money supply of the country. Thus far, no systematic study has been conducted to quantify the impact of the mobile money on the conventional money supply of Bangladesh. In this study, we attempt to quantify the contribution of mobile money on the money supply which is an important quantity-based anchor of monetary policy in Bangladesh. Apart from quantifying the impact of digital (mobile) money on the money supply, we also qualitatively discuss its implication on another price-based nominal anchor of monetary policy in Bangladesh, i.e., interest rate. Moreover, in recent times, the government of Bangladesh has capped market interest rate with an intent to boost up business activities and in doing so, it (the government) has irrevocably broken the money market equilibrium which may result into dead-weight loss according to economic theory. Here, we qualitatively argue that financial inclusion through MFS has the potential to substantially reduce market interest rate without any manual intervention by significantly adding to the money supply which is supposed to be resulted into a reduced interest rate as an eventual consequence. |
| Keywords: | Mobile financial services; Bangladesh; financial inclusion; money supply; money multiplier; monetary policy |
| JEL: | E51 E52 G21 G28 O11 O33 |
| Date: | 2021–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109552&r= |
| By: | Dini, Marco; Heredia Zurita, Andrea |
| Abstract: | The institutions that support micro-, small and medium-sized enterprises (MSMEs) in Latin America have demonstrated their capacity to react to the challenges posed by the coronavirus disease (COVID-19) pandemic, making unprecedented efforts to adapt support instruments and adjust their management modalities to new needs. This document summarizes the experiences of nine countries in the region (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama and Uruguay), highlighting good practices and methodological lessons learned that can be leveraged to improve the performance of the development system once the pandemic is over. There are three areas of particular importance for economic recovery: support for the incorporation of digital technologies, incentives for formalizing companies and biosafety protocols. There are also signs of a shift in the way policies are formulated, towards adaptive management models that focus on accountability and the strengthening of public institutions, the deepening of partnerships with the business sector and the consolidation of decentralization dynamics that provide space for participation by local and regional actors. |
| Keywords: | PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, LIQUIDEZ, EMPLEO, FINANCIAMIENTO DE EMPRESAS, DESARROLLO DE EMPRESAS, COVID-19, VIRUS, EPIDEMIAS, ASPECTOS ECONOMICOS, POLITICA DE DESARROLLO, POLITICA INDUSTRIAL, PRODUCTIVIDAD, INNOVACIONES, TECNOLOGIA DIGITAL, ESTRATEGIA EMPRESARIAL, ESTUDIOS DE CASOS, INCLUSION FINANCIERA, SMALL ENTERPRISES, MEDIUM ENTERPRISES, LIQUIDITY, EMPLOYMENT, BUSINESS FINANCING, ENTERPRISE DEVELOPMENT, COVID-19, VIRUSES, EPIDEMICS, ECONOMIC ASPECTS, DEVELOPMENT POLICY, INDUSTRIAL POLICY, PRODUCTIVITY, INNOVATIONS, DIGITAL TECHNOLOGY, CORPORATE STRATEGIES, CASE STUDIES, FINANCIAL INCLUSION |
| Date: | 2021–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:47145&r= |