nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒06‒27
three papers chosen by

  1. Financial Literacy and Cash Holdings in Turkey By Mustafa Recep Bilici; Saygin Cevik
  2. Understanding Financial Inclusion in Mongolia from a Micro Perspective: Is There a Gender Gap? By Enerelt Murakami
  3. Financial Resilience: A Way Forward Towards Economic Development in Developing Countries By Fanny Salignac; Julien Hanoteau; Ioana Ramia

  1. By: Mustafa Recep Bilici; Saygin Cevik
    Abstract: This paper examines the effect of financial literacy level on cash holdings in Turkey. Utilizing the Methods of Payment Survey, which includes both financial literacy and cash-related data, we first investigate the fundamentals of financial literacy in Turkey. Based on the performance on financial literacy questions, we categorize respondents into three groups. Subsequently, we analyze how cash holding behavior differs among financial literacy groups. Our results reveal that financially literate respondents tend to hold less cash on hand and store more cash elsewhere. Moreover, card ownership increases through financial literacy and the change in payment behavior of financially literate respondents is more significant during Covid-19 pandemic. The results imply that promoting financial literacy may result in less cash usage at points of sale accompanied by the currency in circulation growth, due to the overwhelming effect of increased non-transactional demand following a positive change in financial literacy level.
    Keywords: Financial literacy, Money demand, Cash demand
    JEL: C50 E41 G53
    Date: 2022
  2. By: Enerelt Murakami
    Abstract: This paper investigates the determinants of financial inclusion in Mongolia – a country where persistent “reverse” gender gap in financial inclusion exists. When applying multivariate logistic models to nationally representative data, results show that women, and those who are more educated and older are more likely to be financially included. Women are four percentage points more likely than men to have access to formal finances; men are more likely to report barriers to finance and use informal finances. The Blinder-Oaxaca decomposition technique is employed to analyze the “reverse” gender disparity in financial inclusion. The results demonstrate that the disparity is largely due to coefficient effects that reflect behavioral or unobserved differences towards financial inclusion between men and women.
    Keywords: Financial inclusion, Gender, Mongolia
    Date: 2022–04
  3. By: Fanny Salignac (Kedge BS - Kedge Business School); Julien Hanoteau (Kedge BS - Kedge Business School, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Ioana Ramia (UNSW - University of New South Wales [Sydney])
    Abstract: Financial inclusion is a policy priority in both developed and developing countries. Yet almost one in four people remain financially excluded around the globe, with the vast majority living in the developing world. In this paper, we argue that financial resilience: an individual's ability to function effectively in adverse financial situations, can better help us assist people to cope with financial adversity, develop effective policy and, ultimately, improve economic development. This paper builds on an existing financial resilience measurement framework and adapts it to develop a measure appropriate to the context of developing countries. Indonesia, where one in three people are financially excluded, is used as a case country from which to draw conclusions. We use the Indonesia Family Life Survey and put forward the country's first snapshot of financial resilience. Implications for research and policy are presented.
    Keywords: Financial inclusion,Financial resilience,Economic development,Poverty,Indonesia
    Date: 2022–02

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