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on Financial Literacy and Education |
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Issue of 2022‒01‒24
three papers chosen by Viviana Di Giovinazzo Università degli Studi di Milano-Bicocca |
| By: | Ozili, Peterson K |
| Abstract: | This paper examines whether economic policy uncertainty (EPU) reduces the level of financial inclusion. I predict that high EPU should have a negative effect on the level of financial inclusion. I argue that high EPU will discourage financial institutions from providing basic financial services to low end customers and unbanked adults, and this will lead to a decrease in the level of financial inclusion. Using a sample of 22 countries, I find that EPU does not have a significant impact on financial inclusion. None of the nine indicators of financial inclusion have a significant direct relationship with EPU. Also, I find some evidence that the combined effect of high EPU and high nonperforming loans reduces financial inclusion, particularly through bank branch contraction and a reduction in the use of electronic payments. Meanwhile, the use of formal accounts and credit cards increases in times of high credit supply and high EPU. |
| Keywords: | Financial inclusion, policy uncertainty, economic policy uncertainty, business cycle, non-performing loan, cost efficiency, cost to income ratio, access to finance, formal account, credit cards, debit cards, mobile payments, electronic payment, borrowings, savings bank branch, unbanked adults. |
| JEL: | E50 E52 E59 G21 I31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111052&r= |
| By: | Valentina Brailovskaya; Pascaline Dupas; Jonathan Robinson |
| Abstract: | Digital credit has expanded rapidly in Africa, mostly in the form of short-term, high-interest loans offered via mobile money. Loan terms are often opaque and consumer financial literacy is low, providing opportunities for predatory lending. A regression discontinuity analysis shows no negative effect of access to digital loans on financial well-being, but the majority of borrowers fail to repay on time and incur high late fees. We randomize exposure to a short phone-based financial literacy intervention. The intervention improved knowledge and marginally improved loan repayment but increased loan demand, increasing overall default risk. |
| JEL: | D14 O12 O16 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29573&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This study investigates the relevance of inclusive education in moderating the effect of good governance on female economic inclusion in sub-Saharan Africa. First, inclusive tertiary education modulates: (i) government effectiveness to induce a positive net effect on female labour force participation; (ii) political stability and corruption-control to induce negative net effects on female unemployment; (iii) government effectiveness for a positive net effect on female unemployment and (iv) regulation quality and the rule of law for positive net impacts on female employment. Second, inclusive secondary education moderates: (i) corruption-control for a positive net effect on female labour force participation; (ii) “voice and accountability†, government effectiveness and corruption-control for negative net impacts on female unemployment; (iii) the rule of law for a positive net effect on female unemployment; (iv) “voice and accountability†, government effectiveness and corruption-control for positive net effects on female employment. Policy implications are discussed. Inclusive education thresholds for complementary policy policies are also computed and discussed. At these thresholds, inclusive education becomes a necessary but not a sufficient condition to complement governance in order to promote female economic inclusion. |
| Keywords: | Africa; Gender; Inclusive development |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:21/009&r= |