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on Financial Literacy and Education |
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Issue of 2024‒04‒22
four papers chosen by |
| By: | Ozili, Peterson K |
| Abstract: | In a world where banked customers are increasingly aware of social and environmental issues, agents of financial inclusion need to adopt sustainable practices to remain relevant. This brings us to the issue of sustainable financial inclusion which is quite different from the mainstream financial inclusion concept. Sustainable financial inclusion is a concept used to describe the integration of sustainability principles into financial inclusion strategies. This paper provides an in-depth discussion of sustainable financial inclusion. Using the discourse analysis method, the paper provides several definitions of sustainable financial inclusion, and show the importance and benefits of sustainable financial inclusion. The paper also highlights the strategies to achieve sustainable financial inclusion and some challenges that may be experienced in the pursuit of sustainable financial inclusion. The implication of sustainable financial inclusion is that there will be increasing demand for agents of financial inclusion to not only seek profits but to also seek the preservation of society and the environment in their efforts to increase financial inclusion in rural and urban areas. The sustainable financial inclusion agenda will give banked adults an opportunity to pressure agents of financial inclusion to be sustainability oriented. This is a privilege that is non-existent in the mainstream financial inclusion agenda. This calls for a shift from the ‘mainstream financial inclusion’ agenda to a ‘sustainable financial inclusion’ agenda. |
| Keywords: | financial inclusion, sustainable financial inclusion, sustainability, sustainable development, sustainable development goals, SDGs |
| JEL: | G21 G28 I31 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120440&r=fle |
| By: | Damane, Moeti; Ho, Sin-Yu |
| Abstract: | International policymakers prioritize financial stability and inclusion, but often view them as separate goals, overlooking potential overlap and trade-offs. If synergies and trade-offs between the two concepts are not recognized and understood, policy design may yield less-than-ideal results. This paper provides a systematic review of the theoretical literature on financial inclusion and financial stability as well as empirical research initiatives examining the relationship between the two concepts. We found that current studies do not always present a unified theoretical approach or conceptual framework to explain the channels of the relationship between financial inclusion and stability. Empirical studies to date offer divergent views on the financial inclusion and stability nexus, a dispensation that may be due to country specificities, the multi-faceted nature of financial inclusion and stability or the seldom uniform use of proxies to capture these concepts in the literature. Not only are some studies inconclusive, but some also suggest that financial inclusion has a positive and significant impact on financial stability, as explained by the institutional theory. While other studies, supported by the aggressive credit expansion theory, reveal that financial inclusion can have a negative influence on financial stability. Through this comprehensive review, we intend to improve awareness and cohesion among scholars and policy makers of financial inclusion and financial stability while also facilitating the development of solid foundations to address future research and policy making challenges. |
| Keywords: | Financial inclusion; Financial stability; Financial regulation, Literature review |
| JEL: | G0 G20 G21 G28 |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120369&r=fle |
| By: | Anulo, Olkamo, Degefe |
| Abstract: | Ethiopia has experienced substantial growth in per capita income, domestic savings, and financial sector developments over the past four decades. This paper aims to examine the causal relationship between certain variables in Ethiopia from 1981 to 2023. The variables considered in this paper include per capita income, private sector credit, domestic savings, and the rate of change in the consumer price index. Per capita income and private sector credit are used as proxies to measure real economic growth and financial sector development, while the inflation rate plays a crucial role in controlling these variables. The study used the bounds cointegration test within the Autoregressive Distributive Lag (ARDL) model framework to investigate the existence of long-run integration among series. The ADF unit root test was employed to determine whether variables remained stationary. This paper used the Granger causality test to determine causal influences in the Ethiopian economy. The vector error correction model was employed for this purpose. The study also aimed to identify hypotheses that support these causal influences. The findings affirm the existence of bidirectional causal relationships among the variables. Thus, the Ethiopian economy adheres to a feedback hypothesis, which suggests that an expansion of real economic growth will favour efficient financial development and stimulate savings. Similarly, having a well-functional financial sector development and steadfast domestic resources plays a crucial role in promoting economic growth. |
| Keywords: | Testing hypotheses, domestic savings, private sector credit, and Real economy growth |
| JEL: | E6 |
| Date: | 2024–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120335&r=fle |
| By: | Kristoffer Balle Hvidberg (CEBI, University of Copenhagen) |
| Abstract: | This paper documents how extensive economic education can reduce the risk of getting into financial trouble by comparing people who enter business and economics programs with people who enter other higher education programs. To identify the causal effect, I exploit GPA admission thresholds that quasi-randomize applicants near the thresholds into different higher education programs. I find that admission to an economics program reduces the probability of loan default and delinquency by one half. This large reduction is associated with changes in financial behavior, but it is not associated with differences in the level or stability of people' income. |
| Keywords: | Financial Problems, Education, Regression Discontinuity, Financial Literacy |
| JEL: | G51 G53 I23 |
| Date: | 2023–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kucebi:2112&r=fle |