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on Financial Literacy and Education |
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Issue of 2021‒12‒06
six papers chosen by |
| By: | Ms. Sumiko Ogawa; Purva Khera; Miss Stephanie Y Ng; Ms. Ratna Sahay |
| Abstract: | Digital financial services have been a key driver of financial inclusion in recent years. While there is evidence that financial inclusion through traditional services has a positive impact on economic growth, do the same results carry over for digital financial inclusion? What drives digital financial inclusion? Why does it advance more in some countries but not in others? Using new indices of financial inclusion developed in Khera et. al. (2021), this paper addresses these questions for 52 developing countries. Using cross-sectional instrument variable procedure, we find that the exogenous component of digital financial inclusion is positively associated with growth in GDP per capita during 2011-2018, which suggests that digital financial inclusion can accelerate economic growth. Fractional logit and random effects empirical estimation identifies access to infrastructure, financial and digital literacy, and quality of institutions as key drivers of digital financial inclusion. These findings are then used to help inform policy recommendations in areas related to the digitization of financial services to promote financial inclusion. |
| Keywords: | A. literature review; digitization of financial services; capital markets department; growth rate; Digital financial services; number in bracket; regression equation; Financial inclusion; Mobile banking; Middle East and Central Asia; Caribbean; Asia and Pacific |
| Date: | 2021–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/167&r= |
| By: | Marie-Hélène BROIHANNE (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | This article examines the gender gap in subjective financial literacy of retail clients of a large European bank. Using a database of banking records and questionnaire answers of more than 50,000 retail clients, the gender gap in subjective financial literacy was found to be significantly higher for individuals living as part of a couple. To distinguish the respective impact of financial responsibility and subjective literacy between partners in households, the study was based on 7,382 dual-income couples for which data was matched since spouses hold a joint bank account. The findings suggest that the gender gap in subjective financial literacy between spouses is reduced because of couple consensus during spouses' joint decision-making. As 70% of couples exhibit no gender gap in subjective financial literacy, the couple characteristics that explain either a classical or an inverse subjective financial literacy gender gap are identified. We show that the heterogeneity in the gender gap in subjective financial literacy of couples is related to that of spouses' financial management styles. |
| Keywords: | Subjective financial literacy, Gender gap, Spouses' financial decision-making, Spouse dominance, Financial management styles |
| JEL: | G02 G11 G28 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2021-08&r= |
| By: | Ofeh M. Edoh (University of Dschang, Cameroon); Tii N. Nchofoung (University of Dschang, Cameroon); Ofeh E. Anchi (University of Bamenda, Cameroon) |
| Abstract: | This study examines the impact of financial inclusion on household health expenditure in 17 African countries. It argues that financial inclusion is an active influencer of individuals’ health demand and that Gross Domestic Product (GDP) per capita and voluntary health insurance schemes tend to be active transmission channels through which financial inclusion affects household health expenditures. The study used an instrumental variable (2SLS) technique for the analysis over a period from 2008 to 2017.Results from the study show that being financially included leads to increase household health expenditures. Suggestions for policy emerging from this study to governments in Africa are on the aspect of fostering financial inclusion to a wider population alongside enhancing the Universal Health Coverage (UHC) plan to ease the burden of out-of-pocket payments on households. |
| Keywords: | Financial inclusion, Health expenditure, Out-of-pocket (OOP) payments, 2SLS |
| JEL: | G15 I13 C23 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/080&r= |
| By: | Nathanael Ojong (York University, Toronto, Canada); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This chapter examines how the Covid-19 pandemic has affected financial development and financial inclusion in African countries. The study provides both broad perspectives and country-specific frameworks based on selected country cases studies. Some emphasis is placed on the achievement of sustainable development goals (SDGs) that are related to financial inclusion. The study aims to understand what immediate challenges the COVID-19 pandemic has represented to the economies and societies on the one hand and on the other, the effect of the COVID-19 on the interconnected financial systems in terms of consequences of the pandemic. The relevance of the study builds on the importance of these insights in helping both scholars and policy makers understand how the effect of the pandemic on the financial system and by extension, the global economy can be mitigated for more financial inclusion. |
| Keywords: | Covid-19 pandemic; financial development; Financial inclusion; Africa |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/078&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Mushfiqur Rahman (London, UK); Okeoma J-P Okeke (London, UK); Afzal S. Munna (London, UK) |
| Abstract: | The study provides insights into how tourism can be managed to improve financial access in sub-Saharan Africa. The empirical evidence is based on the generalised method of moments. To make this assessment, inequality dynamics (i.e. the Gini coefficient, the Atkinson index and Palma ratio) are interacted with tourism (tourism receipts and tourists’ arrivals) to establish inequality levels that should not be exceeded in order for tourism to promote financial access in the sampled countries. From the findings, inequality levels that should not be exceeded for tourism to promote financial access are provided: (i) 0.666 of the Atkinson index and 5.000 of the Palma ratio for tourism receipts to promote financial access and (ii) for tourist arrivals to enhance financial access, 0.586, 0.721 and 6.597 respectively, of the Gini coefficient, the Atkinson index, and the Palma ratio. Policy implications are discussed. |
| Keywords: | Tourism; Management; Financial access; Inequality; Africa; Sustainable Development |
| JEL: | O10 O40 Z3 Z32 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/079&r= |
| By: | Erik Feyen; Jon Frost; Harish Natarajan; Tara Rice |
| Abstract: | Proposals for global stablecoins have put a much-needed spotlight on deficiencies in financial inclusion and cross-border payments and remittances in emerging market and developing economies (EMDEs). Yet stablecoin initiatives are no panacea. While they may achieve adoption in certain EMDEs, they may also pose particular development, macroeconomic and cross-border challenges for these countries and have not been tested at scale. Several EMDE authorities are weighing the potential costs and benefits of central bank digital currencies (CBDCs). We argue that the distinction between token-based and account-based money matters less than the distinction between central bank and non-central bank money. Fast-moving fintech innovations that are built on or improve the existing financial plumbing may address many of the issues in EMDEs that both private stablecoins and CBDCs aim to tackle. |
| JEL: | E42 E51 E58 F31 G28 O33 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:973&r= |