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on Financial Literacy and Education |
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Issue of 2025–03–03
five papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Bahloul Naamane (Mohamed Cherif Messaadia University - Université Mohamed-Chérif Messaadia [Souk Ahras]); Sihamdi Imad (Mohamed Cherif Messaadia University - Université Mohamed-Chérif Messaadia [Souk Ahras]) |
| Abstract: | This paper examines the role of the National Centre for Financial Education in promoting financial literacy and inclusion among low-income families in India. The study is based on a comprehensive review of existing literature and available statistics on Indian NCFE coders. The analysis reveals that these programmes have the potential to significantly improve financial culture and inclusion and that financial technology platforms have a role in promoting responsible financial behaviour. |
| Keywords: | Financial Inclusion, Financial Literacy, Financial Technology (fintech) JEL Classification Codes: D12 D14 O10, Financial Technology (fintech) JEL Classification Codes: D12, D14, O10 |
| Date: | 2023–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04521285 |
| By: | Ozili, Peterson K |
| Abstract: | This article proposes a financial literacy theory of financial inclusion. It also presents the different possible scenarios of the relationship between financial literacy, financial illiteracy, financial inclusion and financial exclusion using a grid. The theory argues that financial literacy can influence the level of financial inclusion, and it projects low level of financial literacy as a potential cause of low level of financial inclusion. It showed that people who are financially illiterate and are financially included may not be able to maximise their welfare in the formal financial system because they lack financial literacy. By providing financial literacy programs and other incentives to join the formal financial system, many financially illiterate people will be willing to join the formal financial system and use existing formal financial services to meet their needs. The theory is significant because it explains a major reason why the level of financial inclusion in low in some countries. |
| Keywords: | theory, financial literacy, financial inclusion, financial education, access to finance, financial literacy theory of financial inclusion |
| JEL: | G21 G28 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123588 |
| By: | Ozili, Peterson K |
| Abstract: | This study considers a world where it is possible to attain full financial inclusion where full financial inclusion means achieving a 100% level of financial inclusion in whichever way financial inclusion is measured. It was argued that increasing the level of financial inclusion is a priority for policymakers in developing countries while many developed countries have already attained a high level of financial inclusion. After the highest possible level of financial inclusion has been attained, countries that have achieved such a feat will think about what next can be done about financial inclusion. This article addresses this issue and offers insights into the course of action that countries can take after achieving full financial inclusion in whichever way financial inclusion is measured. This study also explores the philosophical nature of this question by casting some light into whether attaining full financial inclusion is a worthwhile goal for policymakers to focus on. The insights offered in this study are useful to scholars, policymakers and those responsible for increasing financial inclusion in their countries. |
| Keywords: | financial inclusion, digital financial inclusion, full financial inclusion, criticism |
| JEL: | G21 G28 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123587 |
| By: | KOUAKOU, Thiédjé Gaudens-Omer; KAMALAN, Angbonon Eugène |
| Abstract: | This study assesses the effect of financial development on income inequality in Côte d'Ivoire, using a multidimensional indicator of financial development that incorporates financial inclusion. We use ARDL and quantile regression methods to regress income inequality (measured by the Gini index) on the indicator of financial development and various control variables over the period 1986-2018. The results show that the financial development indicator only reduces income inequality in the short term. In the long term, it increases them at all quantiles, with a more accentuated effect in the upper quantiles than in the lower quantiles. This counter-intuitive result is explained by the lesser orientation of financial inclusion towards income-generating activities. The study recommends the following measures: link financial inclusion and income-generating activities and strengthen platforms aimed at reducing information asymmetry between borrowers and lenders. |
| Keywords: | Financial development; income inequality; ARDL model; quantile regression. |
| JEL: | C32 D63 G10 |
| Date: | 2025–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123616 |
| By: | Hillary C. Johnson; Cecile Thioro Niang; Francesco Strobbe; Salman Alibhai |
| Abstract: | Examining one of the world’s largest public business support programs, this paper studies how subsidized credit and partial credit guarantees shape access to finance for micro and small businesses in Indonesia. The analysis uses administrative data on more than 8.4 million borrowers and unique quantitative and qualitative data to show that subsidized credit can enable firms to access formal credit for the first time and boost financial inclusion. However, subsidized credit does not alleviate longer-term credit constraints by serving as a stepping stone to unsubsidized commercial credit in this context. The results highlight the challenge of reaching borrowers without collateral, even in programs that explicitly target them using instruments such as partial credit guarantees. The paper sheds light on how public credit schemes for small businesses can be designed to optimize inclusiveness and additionality. |
| Date: | 2024–09–04 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10894 |