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on Financial Literacy and Education |
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Issue of 2019‒12‒02
five papers chosen by |
| By: | Taghizadeh-Hesary, Farhad (Asian Development Bank Institute); Yoshino, Naoyuki (Asian Development Bank Institute); Fukuda, Lisa (Asian Development Bank Institute) |
| Abstract: | Within a patriarchal society, women are placed in a precarious societal positioning that leads to a prevalence of gender inequality in education, financial literacy, and access to finance. In the context of Asia, where small and medium-sized enterprises (SMEs) are the backbone of most Asian economies and the financial sector is dominated by banks, women in entrepreneurship are susceptible to facing greater credit constraints relative to their male counterparts, which can compromise their corporate performance. We investigate whether there is a significant association between gender and success or failure of SMEs. Using a statistical analysis technique (principal component analysis) and running econometrics regressions on a random sample of 1,492 exporter SMEs from Iran, the research answers the question: is it plausible to conclude that female-owned SMEs are bound for lower corporate performance relative to those of male counterparts? Empirical results show that indeed, despite showing a good leverage status, female-owned SMEs perform lower relative to male counterparts as they have a higher default ratio and lower profitability, liquidity, and coverage. We provide policy suggestions, such as establishment of credit guarantee funds for easing the female-owned SMEs’ access to finance in Asia. Implementation of supportive policies for female-owned SMEs will have significant contribution to economic growth, employment, and ultimately, to gender equality. |
| Keywords: | economics of gender; small and medium-sized enterprises; corporate performance of SMEs; financial literacy gap; access to finance; gender inequality; financial inclusion |
| JEL: | G21 G32 J16 |
| Date: | 2019–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0937&r=all |
| By: | Brixiova, Zuzana (University of Economics Prague); Kangoye, Thierry (African Development Bank) |
| Abstract: | In the aftermath of the global financial crisis, policymakers have been increasingly striving to support female entrepreneurship as a possible growth driver. This paper contributes to reconciling mixed findings in the literature on the effectiveness of entrepreneurial training with an analysis that links training and human capital, including tertiary education and non-cognitive skills, with gender gaps in entrepreneurial performance in Africa. We have found that while financial literacy training directly benefits men, it does not raise the sales level of women entrepreneurs. Instead, tertiary education has a direct positive link with the performance of women. Consistent with our theoretical model where different skills are complements, tertiary education can act as a channel that makes training effective. Regarding non-cognitive skills, evidence shows that women entrepreneurs who are tenacious achieve stronger sales performance. Our results underscore the importance of incorporating tertiary education and entrepreneurial training programs focused on a balanced set of skills, including non-cognitive skills, among policies for women entrepreneurs. |
| Keywords: | female entrepreneurship, training, non-cognitive skills, tertiary education |
| JEL: | L53 O12 J4 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12777&r=all |
| By: | Pelletier, Adeline; Khavul, Susanna; Estrin, Saul |
| Abstract: | Mobile money is a financial innovation that provides transfers, payments, and other financial services at a low or zero cost to individuals in developing countries where banking and capital markets are deficient and financial inclusion is low. We use transaction costs and institutional theories to explain the growth and impact of mobile money. Having developed a new archival dataset that tracks mobile money deployment across 90 emerging economies during 16 years between 2000 and 2015, we address the question of relative economic impact of the banking and telecoms sectors in the provision of mobile money. We show that telecom groups and not banks are more likely to launch mobile money in countries where legal rights are weaker and credit information less prevalent. However, it is when mobile money is offered via a banking channel that the spillover effects on the economy are greater. Findings have significant implications for policy and strategy. |
| JEL: | G21 M13 O33 |
| Date: | 2019–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:101150&r=all |
| By: | Giorgio Nuzzo (Bank of Italy); Stefano Piermattei (Bank of Italy) |
| Abstract: | Since financial inclusion has become a policy target in many countries, it is crucial to measure it properly. The usual indexes of financial inclusion include inappropriate variables and do not take into account other relevant aspects, thus misrepresenting the phenomenon. In this paper, we focus on the distribution of electronic cards, generally not included in the usual indexes of financial inclusion even if they provide alternatives to usual saving practices and make transactions across larger markets and wider geographic areas less costly. We show that if we also take account of these instruments, the comparative valuation of the degree of financial inclusion across the main euro-area countries changes substantially. We also employ survey data to analyse cross-country differences in the degree of financial inclusion and the distribution of multidimensional deprivations of specific sub-groups of populations. |
| Keywords: | financial inclusion, payment instruments, electronic cards |
| JEL: | G20 I22 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_504_19&r=all |
| By: | Anne G. Balter (Tilburg University and Netspar); Malene Kallestrup-Lamb (Aarhus University, PeRCent and CREATES); Jesper Rangvid (Copenhagen Business School and PeRCent) |
| Abstract: | This paper models the impact of unanticipated changes in forecasted life expectancies on guaranteed and unguaranteed pension products. We study a unique data set containing individuals offered the opportunity to substitute a guaranteed pension product with relatively low levels of risk to an unguaranteed product with a higher degree of financial and longevity risk. The complexity of the products and the increase in the level of financial literacy required by the individual to make such a decision motivate the need to properly model the most important drivers that characterize the differences between guaranteed and unguaranteed pension products. This is done within the standard Merton, Black and Scholes framework and we find a clear tradeoff between financial risk and longevity risk in terms of their effect on future pension payments. We find that unguaranteed pension products allow for more financial risk-taking and thus higher expected returns. However, unexpected longevity shocks can reduce pension payments in unguaranteed pension products to a lower level relative to guaranteed products. |
| Keywords: | Macro longevity risk, Variable annuities, Guarantee, Unguarantee |
| JEL: | J32 J11 J17 G22 |
| Date: | 2019–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2019-22&r=all |