nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒07‒18
four papers chosen by

  1. Policy brief on access to finance for inclusive and social entrepreneurship: What role can fintech and financial literacy play? By OECD; European Commission
  2. Saving on the Phone - Evidence from Ghanaian Cocoa Farmers By Possner, Annkathrin; Rosero, Gabriel; Musshoff, Oliver
  3. Factors Influencing the Choice of Pension Distribution at Retirement By Robert L. Clark; Olivia S. Mitchell
  4. Modélisation des effets des réformes institutionnelles sur le développement financier pour la croissance économique en zone CEMAC By Tchouassi, Gérard; Tomo, Christian Parfait

  1. By: OECD; European Commission
    Abstract: This policy brief on access to finance for inclusive and social entrepreneurship was produced by the OECD and the European Commission. It presents evidence on the access to finance challenges faced by entrepreneurs from under-represented and disadvantaged groups and social entrepreneurs, and discusses how public policy could harness the potential of fintech to address these challenges. This covers crowdfunding, blockchain and the application of big data to finance for inclusive and social entrepreneurship. The policy brief also discusses the growing need for governments to strengthen financial literacy among the target groups of inclusive and social entrepreneurship policy, including with respect to fintech. Different policy approaches are discussed, including embedding financial literacy training in financial intermediation.
    Date: 2022–07–04
  2. By: Possner, Annkathrin; Rosero, Gabriel; Musshoff, Oliver
    Abstract: The poor and rural population in Sub Saharan Africa suffers from low financial inclusion. Yet, excluding population parts from accessing formal financial services means lost opportunity for household level, as well as for the whole economy. Evidence suggests that formal saving helps to accumulate larger amounts: Recent studies show how saving contributes to smoothing consumption and increasing resilience. A powerful tool for enhancing marginalized groups’ financial inclusion are mobile financial services. In Ghana’s rapidly developing banking and savings sector open questions remain. We investigate factors affecting Ghanaian cocoa farmers decision to save, as well as their savings amount. Among other factors, we focus on different savings instruments such as mobile saving on the phone, bank accounts or the traditional group saving method Susu. We employ data from a structured telephone survey conducted in 2021 among 405 randomly sampled cocoa farmers. The results of a two-step Heckman approach show that, while Susu or a bank account enhance savings, saving on the phone is associated with lower amounts. However, female farmers seem to benefit from this technology. In the light of recent policies issued by the Ghanaian government, directed at fortifying the digital finance sector, our results provide valuable information for public policy makers as well as the private sector.
    Keywords: Agricultural Finance, Consumer/Household Economics
    Date: 2022–04
  3. By: Robert L. Clark; Olivia S. Mitchell
    Abstract: One of the most important financial decisions that pension participants make concerns how they access their pension assets when they terminate employment with their plan sponsor. Their choices depend both on own preferences and the options offered by their retirement plan. This paper examines both past and future pension withdrawal choices for those with defined benefit and defined contribution pensions, separately. Our data are drawn from a set of pension distribution questions we fielded in the Understanding American Study. Results show significant differences in distribution choices based on the type of retirement plan, with individuals covered by defined benefit plans significantly more likely to select annuities compared to similar employees covered by defined contribution plans. We also find differences in how higher annual income affects annuity choices based on coverage by DB plans. Individuals with lower levels of financial literacy and lower annual income have less knowledge of basic pension characteristics.
    JEL: D12 J26
    Date: 2022–06
  4. By: Tchouassi, Gérard; Tomo, Christian Parfait
    Abstract: This article studies the effects on economic growth of institutional reforms of financial development in the Central African Economic and Monetary Community. The results obtained using the method of generalized moments on a balanced panel show that the institutional reforms of financial development have contributed to economic growth. However, credit to the private sector does not contribute to economic growth. Furthermore, the results indicate that public spending and trade openness of economies do not contribute to economic growth. On the one hand, States must pursue reforms relating to financial development, in particular the extent of interoperability and interbanking of electronic payment systems and means of payment in order to take advantage of the digitalization of the economy to increase financial inclusion. On the other hand, States should take advantage of the continental free trade area.
    Keywords: Institutional reforms, Financial development, Economic growth, Panel data, GMM, CEMAC
    JEL: D51 D82 F43 G2
    Date: 2022–06–21

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