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on Financial Literacy and Education |
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Issue of 2025–03–31
fourteen papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Okot, Nicholas; Kasekende, Elizabeth |
| Abstract: | Sound policies provide a formal framework for interaction between economic agents engaged in the production, distribution, exchange and consumption of goods and services. The transition to digital finance requires policies that spur innovation and promote competition while protecting agents to enhance confidence in the financial system and financial inclusion. Uganda has enacted a set of laws, regulations, policies and guidelines to regulate digital financial services (DFS). This study examined the impact of digital finance policies on financial inclusion coupled with the gender and rural/urban dimension using the treatments effects model and key informant interviews (KIIs). The findings showed that digital finance policies enhance financial inclusion for both men and women, largely driven by the uptake of mobile money services. Individuals with financial awareness use DFS such as online banking, mobile wallets and agent banking, but are cognizant of risk of fraud. Further, rural dwellers were less likely to access digital finance than were their urban counterparts. The KII confirmed that indeed DFS has enhanced access and usage of financial services. The other drivers of financial inclusion cited were costs, convenience and FinTech innovations. However, gender disparity existed, with rural women being the most disadvantaged. This requires public policy to provide infrastructure where the private sector has no incentives, review distortionary taxes, enhance financial literacy and mitigation of cybercrime. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:75d4d4fb-5fa0-4a7b-af82-62d6b40dc5ca |
| By: | Mothobi, Onkokame |
| Abstract: | This paper analyses the effect of mobile network coverage on financial inclusion using the survey data of 12, 735 individuals from nine sub-Saharan African countries conducted in 2017. We use the geolocation of respondents to combine the survey data with information on the proximity of mobile network towers. We estimate a two-stage model: in the first stage consumers decide to adopt a technology device, and in the second stage they decide whether to use digital financial services or not. The results show that financial inclusion is positively influenced by mobile network coverage. In counterfactual POLICY BRIEF The Impact of Network Coverage on Adoption of Fintech Platforms and Financial Inclusion Onkokame Mothobi October 2023 / No.798 2 Policy Brief No.798 simulations, we consider that the whole population lives within 2km of the towers of any of these networks and find that the adoption of digital financial services would increase by 2%, on average, depending on the country. Considering a case where the whole population lives within a 2km radius from the LTE tower, financial inclusion would increase by 6% in Mozambique and 3% in Ghana, Rwanda, and Senegal. In Tanzania, where mobile money is a common financial service, investment in GSM and UMTS would have a larger impact on financial inclusion than LTE. These results show that non-Internet-based digital financial technologies have a greater impact on financial inclusion in East African countries than those that require consumers to be connected to the Internet. The results also indicate that digital financial platforms act as substitutes for a bank account among the poor, and as a complement for those who own a bank account. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:323bd6d8-85d4-47e3-b56f-7c23eaececfc |
| By: | Adeniran, Adedeji P.; Muthinja, Moses M. |
| Abstract: | We examine the role of financial inclusion, ownership of bank accounts, and previous use of formal financial saving facilities as a resilience factor in the effect of COVID-19 on households' welfare in Nigeria. Using a novel data set that tracks food security among families in Nigeria before and during COVID-19, we find a negative effect of COVID-19 on welfare. The impact is more severe among male-headed households, those living in the southern region of Nigeria, and lower educated households. We also test how financial inclusion mitigates this effect through a triple difference analysis in which the households that are financially included and in non-agricultural sector are considered the treatment group. Financial inclusion did not support resilience to shock among non-agricultural homes. Given the magnitude and multisectoral dimension of the COVID-19 shock, financial inclusion was not enough to mitigate the effect. This, therefore, points to a role for stronger government support in a large shock like COVID-19. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:2f1c64ac-2173-4191-826b-a4d3ddcb3648 |
| By: | International Finance Corporation (IFC) |
| Keywords: | Social Protections and Labor Finance and Financial Sector Development-Financial Sector and Social Assistance |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41758 |
| By: | Kodongo, Odongo |
| Abstract: | Motivated by calls to examine whether fintech fosters effective financial inclusion, we examined how consumer engagement with the fintech ecosystem affects access to traditional financial services. Using the FinAccess Kenya Household Survey 2021 data, we constructed a novel metric of individual engagement with the fintech ecosystem and investigated how it is associated with consumption of formal traditional financial products at the microlevel. Deploying a battery of econometric procedures, we have provided robust evidence that individual engagement with the fintech ecosystem is positively associated with use of formal traditional financial products. The positive impact of individual engagement with the fintech ecosystem on their use of traditional financial products is transmitted though reduction of the distance barrier and by fostering the consumption of financial products by traditionally disfavoured population segments. We have provided several policy guides anchored on these findings. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b3a2fad3-1c4f-4e95-9cd3-611652fcad81 |
| By: | Munyegera, Ggombe Kasim |
| Abstract: | Rwanda has distinguished itself in terms of efforts to promote gender equality and womens empowerment. However, some distinctive gender-based socio-economic differences remain that are worthy of policy attention. This study examined the gender differences in access to and usage of financial services and products in Rwanda using the FinScope survey of 2020. Probit regression models were used to estimate the propensity of ownership and access to digital platforms and the likelihood of using financial services. Results showed that women significantly lag behind men in terms of adoption of mobile phones, computers and the Internet. Similarly, they are less likely than men to own bank and mobile money accounts, which further translates into reduced propensity to save, and to receive and send remittances. Using Tobit regression models, the study revealed gender differences in financial inclusion at the intensive margin, that is, the amount of money saved, borrowed and sent in remittances was significantly lower among females than among males. Propensity score matching was used as a robustness check that further confirmed the negative gender effect on financial access and usage. The results imply that strategies to promote financial inclusion and digital financial services (DFS) ought to pay special attention to the specific challenges that limit women from adopting digital platforms, and from accessing and effectively using financial services to ensure greater gender equality and inclusive sustainable development in the country. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:928e048f-f001-46a8-9841-c8538417ca48 |
| By: | Rajesh Barik (Department of Economics & Finance, BITS Pilani, K K Birla Goa Campus, Near NH-17B, Bypass Road, Chamber #D-308/5(NAB), Zuarinagar – 403 726, Goa, India); Parthajit Kayal ((corresponding author) Asst. Professor, Madras School of Economics, Chennai, Tamil Nadu, India, 600025) |
| Abstract: | Electricity consumption's positive impact on household well-being, education, and quality of life is well-documented. Yet, providing accessible and affordable electricity remains a global governance challenge. This study explores the potential of financial inclusion to extend electricity consumption. Investigating the relationship empirically, we analyze the effect of financial inclusion on per capita electricity consumption across countries. Using annual data from 2004 to 2021, we employ various econometric models (such as ordinary least squares, fixed effect, random effect, panel corrected standard errors, feasible general least square, Generalized Method of Moments, and Driscoll-Kraay approach) to examine this nexus in both upper-middle and lower-middle income countries. The study unveils a positive association between financial inclusion and per capita electricity consumption across the overall sample and income subgroups. Robustness checks further underscore the consistency of our findings across income categories. In light of our findings, policymakers could consider leveraging financial inclusion initiatives as strategic measures to bolster electricity consumption across both upper- and lower-middle-income countries. |
| Keywords: | Financial Inclusion, Electricity consumption, Cross-Country, Upper-Middle income, Lower-Middle income, Empirical Analysis |
| JEL: | O12 O13 O16 Q43 I32 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mad:wpaper:2025-277 |
| By: | Gakpa, Lewis-Landry |
| Abstract: | This paper investigates how financial inclusion affects individuals' decisions to start businesses in the context of six sub-Saharan African countries, using micro-data from the FinScope and FinAccess surveys. To do so, we use an instrumental variable (IV) technique to assess the empirical relationships. Overall, the results reveal that access to both banking services, formal non banking services, informal financial services and mobile money services positively and significantly influenced the decision to start businesses in the six countries. Furthermore, although the results show that a range of both demand POLICY BRIEF Financial Inclusion and Entrepreneurship in Six sub-Saharan African Countries: Evidence from Finaccess and Finscope Survey Data Lewis-Landry Gakpa October 2023 / No.793 2 Policy Brief No.793 and supply side barriers prevent individuals from accessing banking services for entrepreneurial purposes, supply side constraints are the most common barriers to individuals starting a business. In view of the above, policy interventions should first aim at creating an enabling environment to increase people's access to all types of financial services and secondly, address both supply and demand side constraints to promote entrepreneurship and economic growth. All of these measures should be aimed at increasing the level of financial inclusion with a view to stimulating entrepreneurial activities, which are the real pillars in the development and poverty reduction process in sub-Saharan African countries. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:4387c5f4-4f65-4460-829f-be0dcfa82685 |
| By: | Botha, Rosemary; Kamninga, Tony Mwenda; Tuyisenge, Methode |
| Abstract: | This study investigated the extent to which access to digital financial services empowers women to engage in more high value activities within the household. The study used the 2020 Rwanda FinScope Survey data, a nationally representative data set covering 12, 480 individual respondents from all the districts in the country. Using a control function (CF) instrumental variable technique, the study found that mobile money increased womens ability to make decisions about the management of household income on their own or jointly with their partner (agency). The results further indicate that mobile money increased female access to credit. Usage of mobile money had a positive and significant effect on agency for women residing in rural Rwanda. Although females residing in female-headed households experienced an increase in agency and access to credit, the rate of change for females residing in male-headed households were comparatively higher. The results provide evidence of incremental agency benefits that digital financial inclusion has for women whose baseline decision-making power is low, especially in patriarchal societies where women have been historically disenfranchised in household decision-making. Thus, mobile money could be used as a tool for poverty reduction and service providers; can invest in developing services that deepen household savings and credit through mobile money to further contribute to improvement of household welfare. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:3687a661-6991-478f-971a-00e6d2257011 |
| By: | BIZOZA, Saidi; IRAKOZE, Gildas |
| Abstract: | Mobile money is a good example of the technological revolution through the digitalization of the banking system. However, the advantages offered by this new technological revolution has never been deeply explored with perspectives of existing gender and location gap in terms of financial inclusion. The present study explored the existence of policy/Regulations of Mobile Money in Burundi, the determinants of use of mobile phone and mobile money as well as the intensity of use of mobile money services and the mobile money usage impacts on gender and location perspectives on livelihood outcomes. The study used primary data collected in five different provinces. The study found that the mobile money ecosystem is governed by three different entities without a legal platform gathering them, moreover, the mobile money system is regulated by same text governing payment institutions. Furthermore, the access to electricity, alternative ways of recharge in case of lack of electricity and type of occupation of the household head were found to have a positive and significant influence on thrive, use of mobile phone, registration for mobile money and intensity of use of mobile money services. Education level, remittances, and location (urban vs rural) were found to have a positive and significant influence on both the registration and intensity of use of mobile money services. The study found also that the use of mobile money positively influences the quality of food consumption as well as the economic status proxied by wealth Index. No gender gap was found on food consumption for both wealth assets index and food consumption among the mobile money users. A significant gender gap was found both in wealth assets index and food consumption scores for mobile money non-users. A location food consumption gap was revealed for both mobile money users and non-users but with a significance skewed to mobile money nonusers households. A gap on location wealth assets was spotted out in favor of urban households for both mobile money users and non-users. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:8cdd1260-1184-4ac3-b253-9f0baecc93a4 |
| By: | Tamba, Cox Lwaka; Murithi, Immaculate Kathomi |
| Abstract: | The meteoric rise of digital financial services (DFS) in recent years has sparked the debate on whether they help financially constrained businesses to overcome their performance disadvantages. This study sought to examine whether female-owned enterprises, which tend to be more financially constrained than those owned by men, could curb their performance disadvantage attributable to financial constraints by using mobile moneya form of digital financial technology. Analysing data drawn from 317 firms subsumed in the 2018 World Bank Enterprise Survey on Kenya, we found that the use of mobile money for financial transactions reduces the performance disadvantage of female-owned firms. Using the OaxacaBlinder decomposition analysis, we further found that female-owned enterprises which use mobile money for financial transactions were able to cut circa 42.5% of their performance disadvantage induced by financial constraints. In additional analyses, we demonstrated that the influence of access to traditional financial services on the association between a firms use of mobile money and its performance outcomes is statistically insignificant. Overall, the findings highlight that women-owned firms could exploit mobile money technology to mitigate the gender gap in performance outcomes. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:94e6dcbb-ef84-4ee5-ab21-0546b67245b1 |
| By: | Lemma, Tesfaye T.; Mlilo, Mthokozisi |
| Abstract: | The meteoric rise of digital financial services (DFS) in recent years has sparked the debate on whether they help financially constrained businesses to overcome their performance disadvantages. This study sought to examine whether female-owned enterprises, which tend to be more financially constrained than those owned by men, could curb their performance disadvantage attributable to financial constraints by using mobile moneya form of digital financial technology. Analysing data drawn from 317 firms subsumed in the 2018 World Bank Enterprise Survey on Kenya, we found that the use of mobile money for financial transactions reduces the performance disadvantage of female-owned firms. Using the OaxacaBlinder decomposition analysis, we further found that female-owned enterprises which use mobile money for financial transactions were able to cut circa 42.5% of their performance disadvantage induced by financial constraints. In additional analyses, we demonstrated that the influence of access to traditional financial services on the association between a firms use of mobile money and its performance outcomes is statistically insignificant. Overall, the findings highlight that women-owned firms could exploit mobile money technology to mitigate the gender gap in performance outcomes. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:34087862-28f2-450f-858d-c328a7842054 |
| By: | Benedicte, Atchade Touwede |
| Abstract: | Using data from Benins Demographic and Health Surveys (DHS, 2018), we examined the impact of the purchasing power of women on the quality of life of children under the age of five years. More specifically, the study examined the impact of the decision-making power of the woman on the nutritional status of children and also of nutritional status on childrens immunization status, using a Multinomial Logit model with the households as the theoretical models. The results of our study generally show that when the woman is involved in decision making within her household, the nutritional status of children and their immunization status are satisfactory. Variables such as the age of the woman, her level of education, the level of education of the head of the household, the employment status of the head of the household, the main decision maker on the health of the children, the interval between child births, the level of wealth of the household and the sex of the child significantly improve the immunization status of children under the age of five years. However, variables such as the distance from a hospital, giving birth to twins and the order of birth have a negative impact on the immunization status of children. In regard to the nutritional status of children, variables such as the age of the woman, her level of education, the management of the income of the woman, the wealth level of the household, the fact that the child is a girl and the fact that the parents collectively decide on the health of the children lower the probability of the child being malnourished. However, variables such as birth order to the children, the fact that the children are twins and age of the child increase the probability of a child being malnourished. Initiatives and approaches therefore should be undertaken in order to increase the empowerment of women. The results of this study will have a positive impact on the nutritional status of women. In the short term, these recommendations should have an impact on the scholarly results of children, in the medium term on the labour market, and in the long term on sustained economic growth. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:d93832d7-8d50-4902-abcb-0fe7790b794e |
| By: | Gakpa, Lewis-Landry |
| Abstract: | Cette etude examine comment l'inclusion financiere agit sur la decision des individus de creer une entreprise dans le contexte de six pays d'Afrique subsaharienne, en utilisant des micro-donnees provenant des enquetes FinScope et FinAccess. Pour ce faire, nous utilisons une technique de variable instrumentale (IV) pour evaluer les relations empiriques. Dans l'ensemble, les resultats revelent que l'acces aux services bancaires, aux services non bancaires formels, aux services financiers informels et aux services d'argent mobile a influence de maniere positive et significative la decision de creer une entreprise dans les six pays. En outre, bien que les resultats montrent qu'une serie d'obstacles lies a la demande et a l'offre empechent les individus d'acceder aux services bancaires a des fins entrepreneuriales, les contraintes liees a l'offre sont les obstacles les plus courants a la creation d'une entreprise. Compte tenu de ce qui precede, les interventions politiques devraient tout d'abord viser a creer un environnement favorable afin d'accroitre l'acces des personnes a tous les types de services financiers et, ensuite, s'attaquer aux contraintes liees a l'offre et a la demande afin de promouvoir l'esprit d'entreprise et la croissance economique. Toutes ces mesures devraient viser a accroitre le niveau d'inclusion financiere en vue de stimuler les activites entrepreneuriales, qui sont les veritables piliers du processus de developpement et de reduction de la pauvrete dans les pays d'Afrique subsaharienne. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:0fc3863c-27b1-4680-82fe-142ace32354e |