nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒10‒17
five papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Gender political inclusion and inclusive finance in Africa By Tii N. Nchofoung; Simplice A. Asongu; Vanessa S. Tchamyou
  2. The Effect of Self-Control on Borrowing: Experimental Evidence By Grohmann, Antonia; Hamdan, Jana S.
  3. "The Effect of Financial Literacy, Cost of Technology Adoption, Technology Perceived Usefulness, and Government Support on MSMEs' Business Resilience " By Elissa Dwi Lestari
  4. Fintech in sub-Saharan Africa By Njuguna Ndung'u
  5. Consumer payment preferences in the euro area By Kajdi, László

  1. By: Tii N. Nchofoung (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon)
    Abstract: At the 2010 G20 Summit, the use of formal financial services was recognized as one of the main pillars of the global development agenda. At the same time, the fifth goal of the Sustainable development agenda outlined the importance of gender inclusion for sustainable development. Empirical research on the effect of gender inclusion on inclusive finance has however been limited to micro level studies. This study aims to verify the effect of gender political inclusion on financial inclusion on a sample of 37 African countries from 2004-2020. The empirical methodology involves the Ordinary Least Squares (OLS), the Tobit regression and the System Generalized Method of Moments (GMM) methodologies. The results from these methods show that gender political inclusion is enhancing on financial inclusion in Africa, and this finding is robust across alternative specifications of gender inclusion and inclusive finance. Besides, governance exhibits a positive synergy effect with gender political inclusion on inclusive finance. Policy implications are discussed.
    Keywords: Gender; political inclusion; inclusive finance; Africa
    JEL: G20 I32 O55 P16 P43
    Date: 2022–01
  2. By: Grohmann, Antonia (Aarhus University and DIW Berlin); Hamdan, Jana S. (HU Berlin and DIW Berlin)
    Abstract: This paper examines the effect of reduced self-control on debt-taking in a laboratory experiment. We manipulate self-control using an ego depletion task and show that it is effective. Following the ego depletion task, participants can anonymously buy hot drinks on credit. We find no significant average effects, but find that treated individuals that have low financial literacy are more likely to buy drinks. We complement our experimental analysis with survey evidence that suggests that people with low self-control have more problems with the repayment of consumption debt, but this relationship is, in line with the experimental results, weaker for individuals with high financial literacy.
    Keywords: debt; consumption; borrowing; self-control; ego depletion;
    JEL: D14 G51 C91
    Date: 2020–12–22
  3. By: Elissa Dwi Lestari (Faculty of Business, Universitas Multimedia Nusantara, Indonesia Author-2-Name: Nadiah Abd Hamid Author-2-Workplace-Name: Universiti Teknologi Mara, Shah Alam Selangor, 40450, Shah Alam Selangor, Malaysia Author-3-Name: Nosica Rizkalla Author-3-Workplace-Name: Universitas Multimedia Nusantara, Jl. Scientia Boulevard, 15810, Tangerang, Indonesia Author-4-Name: "Purnamaningsih Purnamaningsih" Author-4-Workplace-Name: Universitas Multimedia Nusantara, Jl. Scientia Boulevard, 15810, Tangerang, Indonesia Author-5-Name: Sharina Bt Tajul Urus Author-5-Workplace-Name: Universiti Teknologi Mara, Shah Alam Selangor, 40450, Shah Alam Selangor, Malaysia Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - The Covid-19 pandemic has made MSMEs enter a crisis period that makes them the most vulnerable sector during a crisis. Given the vital role of MSMEs in economic stability, this study identified the drivers that shape the resilience of the MSME business, which is still not widely explored. This study elaborates on the role of knowledge-based financial literacy, financial resources and the cost of technology adoption from the financial side, TAM from the technology side, and external environmental factors in the form of government support as a driver of MSMEs' business resilience. Methodology/Technique - This study collected data from 339 MSMEs operating amid the Covid-19 crisis, and data analysis was carried out using the PLS-SEM technique. Finding - The results show that financial literacy positively affects financial resources and the cost of adopting technology from a financial perspective. However, only the cost of adoption directly affects business resilience, while financial resources have no effect. In terms of technological acceptance, perceived ease of use positively impacts perceived usefulness. However, only perceived usefulness directly affects business resilience, while perceived ease of use does not. Finally, government support positively affected business resilience during the pandemic. Novelty - This paper elaborates on the financial, technological, and government support aspects as an integrated framework to examine MSME resilience. Type of Paper - Empirical"
    Keywords: MSME Business Resilience, Financial Literacy, Cost of Technology Adoption, Perceived Usefulness, Government Support.
    JEL: M10 M15 M48 O33
    Date: 2022–09–30
  4. By: Njuguna Ndung'u
    Abstract: This paper traces the development of fintech in sub-Saharan Africa, its evolution over time, and the unfolding benefits attained at each stage of its adoption and market evolution. From the onset, fintechs have revolutionized retail electronic payment systems—a revolution that has evolved into a technological platform to manage micro-savers' accounts, virtual savings and credit systems, public financial management, and cross-border remittances, and has led to the adoption of new monetary policy frameworks.
    Keywords: Fintech, Financial inclusion, Saving, Technology, Sub-Saharan Africa
    Date: 2022
  5. By: Kajdi, László
    Abstract: Payments are a key focus of central banks, as - together with the safe, efficient operation of the payments market – wide access to cash is fundamentally important for a healthy economy. In this study, three main research areas were investigated: 1. socioeconomic characteristics that can be associated with financial inclusion; 2. factors behind consumers´ payment choices; 3. underlying factors for holding cash in a wallet (i.e. for transactional purposes). Regression results for the first research question confirmed the findings of international literature, i.e. mainly older age, lower income and lower educational level is associated with the lack of access to electronic payment options. The study pursues various approaches to investigate consumer payments choices, and the results from most models showed that those with higher level of income and education, or lower level of cash income are more likely to prefer and actually use electronic payment methods. Finally, concerning the holding of cash the initial expectations were confirmed i.e. those who do not use cash for daily transactions tend to keep less cash in their wallet, while those who indicated preference for cash payments or higher importance of cash payment option are more likely to keep higher cash amounts. JEL Classification: D11, D12, E42, J33
    Keywords: cash, financial inclusion, payments
    Date: 2022–09

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