nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒03‒21
five papers chosen by

  1. The Impact of Financial Inclusion on Household Health Expenditures in Africa By Ofeh M. Edoh; Tii N. Nchofoung; Ofeh E. Anchi
  2. COVID-19 Global Pandemic, Financial Development and Financial Inclusion By Nathanael Ojong; Simplice A. Asongu
  3. Financial Market Inclusion and Economic Growth: Evidence from Algeria By CHIAD, Faycal; Aouissi, Amine; Lahsasna, Ahcene
  4. Financial education for youth. A randomized evaluation in Uruguay By Fernando Borraz; Ana Caro; Maira Caño-Guiral; María José Roa
  5. Access to Fintech and Poverty : Evidence from the Arrival of 4G Networks in Indonesia By Fatkhurrohman

  1. By: Ofeh M. Edoh (Yaounde, 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
  2. 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
  3. By: CHIAD, Faycal; Aouissi, Amine; Lahsasna, Ahcene
    Abstract: In this paper, we investigated the relationship between financial inclusion (FI), trade openness (TO), human development (HD), and GDP growth in Algeria. Our data set covers annual times series data from 1980 to 2018. The autoregressive distributed lag (ARDL) bounds test was used to examine the cointegration between variables due to mixed orders of integration I(0) and I(1).The results indicate that financial inclusion, trade openness, human development have a positive and significant impact on economic growth in the short and long-run, thereby confirming the strength of the finance-growth connections. Granger-causality test confirms that there is bi-directional causality between financial inclusion and economic growth.
    Keywords: Financial inclusion, Economic Growth, ARDL, Algeria
    JEL: O10
    Date: 2021
  4. By: Fernando Borraz (Banco Central del Uruguay; Departamento de Economía de la Facultad de Ciencias Sociales de la Universidad de la República; Universidad de Montevideo); Ana Caro (Banco Central del Uruguay); Maira Caño-Guiral (Banco Central del Uruguay); María José Roa (Instituto de Investigaciones Económicas y Sociales Francisco de Vitoria; Research Committee of the OECD/INFE)
    Abstract: Using data from a randomized control trial in Uruguay, we evaluate the impact of an economic and financial education program targeted to senior high-school students. The program is based on an innovative playful approach workshop about monetary policy and financial supervision. We find that the workshop has a positive and significant impact on student knowledge. Our results shed light on the importance of economic and financial education for the youth in developing countries.
    Keywords: BCUEduca, economic education, youth, treatment effects
    JEL: A21 D12 I22 J24
    Date: 2021
  5. By: Fatkhurrohman (University of Warwick)
    Abstract: This paper investigates the effect of the arrival of 4G networks on poverty rates by exploiting the gradual adoption of 4G networks in 514 districts/cities in Indonesia. Robust differences-in-differences estimates indicate that 4G network adoption has a significant negative influence on poverty rates – which we argue is due to the increased access to Fintech afforded by the 4G network, hus increasing poor people's access to credit. Moreover, Fintech capitalizes on mobile app-based services, a vastly growing business that has gained popularity since 2015. In addition, this paper also finds that Fintech promotes internet-based job opportunities for impoverished individuals, increasing their income and alleviating poverty in Indonesia.
    Keywords: Fintech ; Financial Inclusion ; Poverty ; Welfare ; Indonesia JEL Classification: O33 ; O36 ; O53 ; I31 ; I32
    Date: 2021

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