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on Financial Literacy and Education |
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Issue of 2026–02–09
three papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Hanan AbdelKhalik Abouelfarag (Damanhour University); Noha Nagi Elboghdadly (Faculty of Economic Studies and Political Science) |
| Abstract: | Financial inclusion is one of the key enablers of driving economic growth, alleviating poverty, and consequently achieving inclusive growth. Although the relationship between financial inclusion and economic growth has been widely investigated, its relationship with inclusive growth remains unexplored. This paper examines the causality between financial inclusion and inclusive growth in Egypt during the period 2004-2022. The novelty of this study resides in constructing two composite indices using a Principal Components Analysis (PCA). The first composite index is for financial inclusion, while the second is a new multidimensional index for inclusive growth. The results reveal that the Inclusive Growth Index experiences an upward trend over the study period while the Financial Inclusion Index starts to increase in 2018. The results of the Toda-Yamamoto Causality Test show a bidirectional causality between financial inclusion and three of the sub-indices of inclusive growth as well as the overall inclusive growth index. The empirical evidence highlights that financial inclusion efforts will not achieve their targeted outcome unless a simultaneous inclusive growth strategy is conducted. Moreover, improving governance indicators is crucial to promoting inclusive growth. |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1736 |
| By: | Sasho Arsov (Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, North Macedonia); Aleksandar Naumoski (Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, North Macedonia); Pece Nedanovski (Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, North Macedonia) |
| Abstract: | The paper explores the issue of digital financial inclusion as a means to overcome the traditional hurdles in access to financial services and its impact on the level of financial development. Using a broad sample of 102 countries worldwide and a time series of data ranging from 2011 to 2021, a Principal Component Analysis is applied to derive a single measure of digital financial inclusion (DFI). The ranking shows that the developed countries and the European nations in general dominate the list, while the bottom is mostly populated by African countries. Using a modified digital financial inclusion index to meet the availability of data, a regression analysis using OLS and GMM techniques was applied to determine the impact of DFI on the level of financial development. The results show that digital financial inclusion has a positive impact on financial development, so the authorities should closely monitor and support the use of digital technologies in the financial sector, as well as enhance the access of the population to these opportunities and their ability to use modern communication technologies. |
| Keywords: | Financial development, Digital financial inclusion, Debit card, ATM |
| JEL: | G20 G50 |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2025:i:6:p:91-101 |
| By: | Rabeh Morrar (An-Najah National University); Fernando Rios-Avila (Levy Economics Institute of Bard College); Habib Hinn (Birzeit University) |
| Abstract: | This research investigates the factors contributing to the traditional and digital financial inclusion (FI) gender gap in Palestine and how it was shaped by the ramifications of the COVID-19 pandemic. Using secondary data from two nationwide FI surveys conducted in 2016 and 2022, the study employs an Oaxaca-Blinder decomposition and an intertemporal decomposition to analyze the changes in gender discrimination in financial literacy and access to financial services over time. Our results show a persistently high FI gender gap in 2016 and 2022. There is a worsening or unchanged FI gender gap in most aspects, including access to bank accounts, formal borrowing, and the adoption of digital financial services. Only the gender gap in access to private insurance decreased between 2016 and 2022, which is generally low in Palestine. The widening FI gender gap is driven by discrimination against women in economic participation (explained by changes in the coefficients gap), followed by changes in men's returns. The deterioration of women's socioeconomic conditions during the COVID-19 pandemic, particularly in terms of labor market participation, was the greatest contributor to the growth of intertemporal FI gender discrimination. Another contributor to the widening FI gender gap was the drop in income and employment during the pandemic, compounded by Israeli restrictions and rising political tension. Nonetheless, the gap narrows slightly over time among older individuals, indicating a positive trend for women’s FI across different age brackets. We find that household composition is pivotal in shaping the gender gap in FI, as the gap shrinks among households with a higher proportion of female members. Finally, adopting modern financial technologies may be slower among women facing barriers related to technology literacy or access to digital financial services; meanwhile, financial technology has a significant influence on the likelihood of FI, particularly favoring women. |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1734 |