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on Financial Literacy and Education |
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Issue of 2022‒02‒21
six papers chosen by |
| By: | Ojong, Nathanael; Asongu, Simplice |
| 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 |
| JEL: | G2 O1 O55 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111560&r= |
| By: | Paladino, Giovanna |
| Abstract: | This article takes its cue from the relevance of the framing effect in the field related to behavioural biases associated with economic decision-making. Most of the attempts made to measure financial literacy relies on surveys that include standardized questions about the knowledge of three or four fundamental concepts. A survey, conducted in October 2021 and involving 2500 individuals representative of the Italian population, made it possible to evaluate whether questions with different wording, aimed to create a higher degree of engagement of the interviewee, determine other answers, and better performance in terms of financial literacy. The descriptive and regression analysis shows that “wording” matters in three out of four questions. A more engaging wording mitigates the gender effect and reduces the probability of women choosing the “I do not know” option. However, as for single questions, there is evidence of an increase in the percentage of answering right, whereas the overall level of financial literacy does not show signs of improvement. |
| Keywords: | financial Knowledge, framing, gender differences |
| JEL: | G02 G11 I22 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111527&r= |
| By: | Jake Anders (UCL Centre for Education Policy & Equalising Opportunities); John Jerrim (UCL Social Research Institute); Lindsey Macmillan (UCL Centre for Education Policy & Equalising Opportunities) |
| Abstract: | Previous research has shown that the UK has low levels of financial literacy by international standards, particularly among those in lower socio-economic groups. This may, in turn, have an impact upon young people, with social inequalities in financial attitudes, behaviours and skills perpetuating across generations. Yet there has been relatively little empirical research on this topic to date, including how such inequalities may be linked to the parents' actions and financial education provided by schools. This paper provides new evidence on this issue for the UK. Using parent-child linked survey data from 3,745 families, we find sizeable socio-economic inequalities in young people's financial capabilities, aspects of their mindset, and their financial behaviours. 15-year-olds from disadvantaged backgrounds having similar financial skills to an 11-year-old from an affluent background. Sizeable differences are also observed in the financial education that socio-economically advantaged and disadvantaged children receive at school, and how they interact with their parents about money. Parental interactions can account for part of the socio-economic gap in money confidence, money management, financial connections, and financial behaviours, but less so in boosting financial abilities. However, we find no evidence of differences in financial education in schools driving differences in young people's financial capabilities. |
| Keywords: | Socio-economic inequality; financial capabilities; financial education; intergenerational transmission. |
| JEL: | I24 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucl:cepeow:22-03&r= |
| By: | Asongu, Simplice; Rahman, Mushfiqur; Okeke, Okeoma; Munna, Afzal |
| 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 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111561&r= |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This research assesses the importance of financial access on value added in three economic sectors in 25 countries in Sub-Saharan Africa using data for the period 1980-2014. The empirical evidence is based on the Generalised Method of Moments. Financial access is measured with private domestic credit, while the three outcome variables are: value added in the agricultural, manufacturing, and service sectors, respectively. Enhancing financial access does not significantly improve value added in the agricultural and manufacturing sectors, while enhancing financial access improves value added in the service sector.An extended analysis shows that in order for the positive net incidence of enhancing credit access on value added to the service sector to be maintained, complementary policies are required when domestic credit to the private sector is between 77.50% and 98.50% of GDP. Policy implications are discussed. |
| Keywords: | Economic Output; Financial Development; Sub-Saharan Africa |
| JEL: | E23 F21 F30 O16 O55 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/009&r= |
| By: | Nchofoung, Tii; Asongu, Simplice; Tchamyou, Vanessa |
| Abstract: | This study examines the effect of political implications of women on industrialisation in Africa. The results after controlling for cross-sectional dependency show that women political implication Granger causes industrialisation in Africa. Besides, the Fixed effect Driscoll/Kraay standard error estimator reveal that women political empowerment negatively affect industrialisation in Africa. These negative effects are nullified by high economic freedom and high female economic participation in the economy. The investment freedom thresholds require for the negative net effects to be nullified are 52.30469, 55.51639, 49.324895, and 55.594059 respectively for the women political empowerment index, women civil liberty, women political participation and women civil society participation interactions; while when women economic participation rates of 43.0777, 35.82, and 46.9 are attained for women political empowerment index, women civil liberty and women civil society participation respectively, complementary policies are needed for a positive effect on industrialisation. The study implores policy makers to improve on the economic freedom of the countries and to elaborate on policies that favour women economic inclusion, if policy towards political inclusion is foreseen in the industrialisation agenda. |
| Keywords: | political empowerment; women; industrialisation; Africa |
| JEL: | G20 I10 O10 O17 O55 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111555&r= |