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on Financial Literacy and Education |
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Issue of 2024‒03‒04
three papers chosen by |
| By: | Ganapati Kumar Biswas |
| Abstract: | Financial inclusion is touted one of the principal drivers for economic growth for an economy. The study aims to explore the impact of financial inclusion on economic growth in Bangladesh. In my study, I used the number of loan accounts as the proxy for financial inclusion. Using time series data from spans from 2004-2021, the study revealed that there exists a long-run relationship between GDP, financial inclusion, and other macroeconomic variables in Bangladesh. The study also found that financial inclusion had a positive impact on economic growth of Bangladesh during the study period. Therefore, the policymakers and the central bank of Bangladesh as the apex authority of financial system should promote financial inclusion activities to achieve sustainable economic growth. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.11585&r=fle |
| By: | Wale-Awe, Olawale; Evans, Olaniyi |
| Abstract: | This study investigates the causal relationship between digital financial inclusion (DFI) and the growth-inequality-poverty triangle in a panel of 42 African countries for the period 1995 to 2018. Simultaneous-equations models, the two-step system generalized method of moments (GMM) versus the default one-step approach, and Toda Yamamoto causality test are used to investigate this relationship. The main results provide evidence that digital financial inclusion has significant negative effects on poverty and inequality, but significant positive effects on growth of GDP per capita, implying that increase in DFI is associated with reduction in poverty and inequality, but increase in economic growth. The implication is that DFI can promote economic growth, as well as alleviate poverty and stem the tide of inequality. The empirical results further show that there is unidirectional causality flowing from DFI to growth and inequality while bi-directional causality exists between DFI and poverty. Interestingly, there is bi-directional causality between growth and inequality, growth, and poverty, as well as between inequality and poverty. Overall, the findings imply that improving digital access to financial services across the continent is essential to increasing income levels, alleviating poverty, and aiding more even distribution of income. Future studies can improve on the extant literature by exploring whether the established findings withstand empirical analysis within country-specific settings. |
| Keywords: | Bitcoin returns, efficient market hypothesis, long memory in volatility, cryptocurrency |
| JEL: | G1 G10 O1 O12 |
| Date: | 2023–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119455&r=fle |
| By: | Felix Aidala; Daniel Mangrum; Wilbert Van der Klaauw |
| Abstract: | In a previous post, we highlighted that financially fragile households are disproportionately likely to use “buy now, pay later” (BNPL) payment plans. In this post, we shed further light on BNPL’s place in its users’ household finances, with a particular focus on how use varies by a household’s level of financial fragility. Our results reveal substantially different use patterns, as more-fragile households tend to use the service to make frequent, relatively small, purchases that they might have trouble affording otherwise. In contrast, financially stable households tend to not use BNPL as frequently and are more likely to emphasize that BNPL allows them to avoid paying interest on credit-finance purchases. We explore below what drives these differences and consider the implications for future BNPL use. |
| Keywords: | Buy Now Pay Later (BNPL); credit; consumer finance; household borrowing; inequality; financial inclusion |
| JEL: | D14 |
| Date: | 2024–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97750&r=fle |