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on Financial Literacy and Education |
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Issue of 2024–11–18
five papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Yoga Affandi (Bank Indonesia); Masagus M. Ridhwan (Bank Indonesia); Irwan Trinugroho (Universitas Sebelas Maret); Danny Hermawan (Bank Indonesia) |
| Abstract: | This study investigates the factors affecting digital adoption by ultra-micro, micro, and small enterprises (UMSEs) based on a survey of 5, 035 UMSEs in 17 major provinces in Indonesia. Utilizing the survey data, we also construct a digital adoption index that can be used to evaluate the regional adoption level variations. The result shows that several factors notably owner demographic characteristics, firm-specific factors, business environment, connectivity infrastructure quality, and culture are associated with the disparity in digital adoption by UMSEs. Our finding also shows a positive and significant correlation between digital adoption on business performance (sales growth). We further found strong evidence of the impact of digital adoption on the level of financial literacy of UMSEs’ owners. The latter result suggests that improving digital adoption among micro businesses (UMSEs) could be a lever to enhance their financial literacy. All in all, these findings suggest the vital role of digital transformation for micro-businesses in achieving growth and competitiveness in the global market, undoubtedly requiring robust support from policymakers. |
| Keywords: | Digital Adoption, Ultra-Micro, Micro and Small Enterprises, Firm Performance, Financial Literacy. |
| JEL: | L25 O33 R11 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp132023 |
| By: | Christian de Boissieu |
| Abstract: | Faced with the rise of cryptocurrencies, central banks are responding by launching their digital currencies. The purpose of this Policy Brief is to provide an update on the preparation of central bank digital currencies (CBDs) by monetary authorities, a process that concerns all emerging, developing, and more advanced countries. It is also about analyzing the conditions and some of the consequences (for banks, for financial inclusion, for the conduct of monetary policy...) of such a financial innovation, systematically distinguishing between wholesale and retail CBDCs. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbtrad:pb_19_23 |
| By: | Chiad, Faycal; GHERBI, Abdelhalim |
| Abstract: | The aim of this research is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by the Islamic banks. Employing fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data for the years 2013 to 2022. The paper explores strong evidence that Islamic banking finance supports economic growth (coefficients ranging from 0.14 to 0.22) and improves financial system stability, as indicated by the coefficients ranging from 0.25 to 0.32. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, which reinforces this link. Furthermore, oil rents in Saudi Arabia contributed to improving economic development and supporting the financial sector's development to achieve economic diversification aimed by Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. |
| Keywords: | Islamic Banks, Financial Stability, Economic Growth, Quantile Regression |
| JEL: | C21 G21 G32 O47 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122409 |
| By: | Asuamah Yeboah, Samuel; Mogre, Diana; Nartey Menzo, Benjamin Prince |
| Abstract: | This review explores the critical impact of social and cultural factors on credit risk assessment and lending practices, especially in developing countries. By examining existing research, we delve into how cultural norms, social relationships, and community dynamics shape the evaluation of creditworthiness for small and medium-scale enterprises (SMEs). Our findings offer valuable insights for policymakers, financial institutions, and researchers aiming to enhance the accuracy and cultural sensitivity of credit risk management strategies for SMEs in these contexts. |
| Keywords: | Credit risk assessment, lending decisions, social factors, cultural dynamics, small and medium-scale enterprises (SMEs), developing countries, community relationships, cultural norms, creditworthiness evaluation, financial inclusion. |
| JEL: | D14 G21 O16 Z13 |
| Date: | 2024–07–13 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122363 |
| By: | Mima Sefrina |
| Abstract: | The rapid development of the digital economy in ASEAN offers broad economic and societal opportunities but also accentuates disparities between urban and rural areas, large enterprises and SMEs, and various segments of the population. While inclusiveness has been a priority on ASEAN's agenda, there is room for improvement. The concept of an inclusive digital economy in ASEAN should extend beyond broadband connectivity and necessitates a precise definition through quantifiable measures. Identifying the key elements of exclusion and inclusion as a strategic approach to effectively address inclusiveness issues is essential to understand the barriers hindering the achievement of an inclusive digital economy. There is also a need to identify specific populations, understand their characteristics, and address their needs for inclusion in the digital economy. A robust, region-specific data system that is accessible to the public is critical. In ASEAN, an inclusive digital economy underscores the need to address digital skills, gender inequality, digital finance, and the empowerment of MSMEs as key economic drivers in ASEAN. |
| Keywords: | Inclusive, ASEAN, Inclusive Digital Economy, Digital Economy, MSMEs, Broadband Connectivity, Digital Finance, Gender Disparities, Digital Skills, Internet Speed, Urban and Rural Divide, Digital Divide, Broadband Affordability |
| JEL: | O20 O38 |
| Date: | 2024–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-33 |