scholarly journals Does strong governance stimulate the effect of economic freedom and financial literacy on financial inclusion? a cross-country evidence

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Muhammad Hussain ◽  
Farzan Yahya ◽  
Muhammad Waqas
Keyword(s):  
Financial Literacy ◽  
Economic Freedom ◽  
Panel Data Analysis ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Government Quality ◽  
Cross Country ◽  
Positive Effect

AbstractThis study examines the interlinkages between financial literacy, economic freedom, government quality, and financial inclusion using cross-sectional and panel data analysis. Using a sample of 98 countries from the year 2007 to 2018, OLS and system GMM estimators were used to analyze the results. The estimation results indicate that financial literacy and government quality positively influence financial inclusion. Results also find that governance quality strengthens the effect of financial literacy on financial inclusion. The results derived from the dynamic panel model also reasonably conclude the positive effect of economic freedom on financial inclusion while government quality acts as a catalyst for their link. Our results are also robust to sub-panels based on the level of country risk.

At what level of corruption does economic growth decrease?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Ali Trabelsi ◽  
Hédi Trabelsi
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Sectional ◽  
Content Type ◽  
Marginal Costs ◽  
Marginal Change ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear and by assessing the veracity of the assumption that corruption is always detrimental to economic growth. Several cross-country studies have treated this question but the findings are not universally robust. Design/methodology/approach In this paper, a panel data analysis has been used to examine 88 countries over the 1984-2011 period. A cross-sectional framework is used in which growth rate and the International Country Risk Guide (ICRG) index are observed only once for each country. Findings The findings indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth. Originality/value This paper shows that the threshold would be a corruption level between 2.5 and 3, which represents the “acceptable corruption level”. This result is conforming to one of the ten principles of economics: “Rational people think at the marginal change”. This threshold represents the point where the marginal benefits of corruption are equal to marginal costs incurred by corruption. Conversely, lack of corruption may be a mechanism that slows down growth.

scholarly journals The Effects of Financial Literacy, Digital Financial Product Usage and Internet Usage on Financial Inclusion in China

2018 ◽  
Vol 228 ◽  
pp. 05012 ◽  
Author(s):  
Yan Shen ◽  
Wenxiu Hu ◽  
C. James Hueng
Keyword(s):  
Financial Literacy ◽  
Mainland China ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Internet Usage ◽  
The Internet ◽  
Multiple Mediation ◽  
Cross Sectional ◽  
Product Usage ◽  
The Relationship

This research study use partial least squares (PLS) to estimate a formative model which analyze effect of financial literacy, digital financial product usage, Internet usage on financial inclusion in mainland China. The study utilize a cross-sectional research design with a sample of 218 individuals from different areas of China participated. The results revealed that financial literacy and digital financial product usage have significant positive relationship with financial inclusion. Digital financial product usage is a mediator of the relationship between financial literacy and financial inclusion. Thus, digital financial product usage unites the Internet usage plays a multiple mediation role between financial literacy and financial inclusion. In short, the digital financial product usage had a partial mediating effect on the relationship between the Internet usage and financial inclusion. The findings indicate that improving the financial literacy of residents and popularizing the Internet usage can promote the use of digital financial products and achieve the goal of advancing financial inclusion.

Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1257-1277
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Developing Countries ◽  
Social Network ◽  
Research Design ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Content Type ◽  
The Poor ◽  
The Relationship

PurposeThe main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.Design/methodology/approachThe study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.FindingsThe results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.Research limitations/implicationsThis study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.Practical implicationsThe advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.Originality/valueThis paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.

scholarly journals Does financial literacy improve financial inclusion? Cross country evidence

2018 ◽  
Vol 111 ◽  
pp. 84-96 ◽  
Author(s):  
Antonia Grohmann ◽  
Theres Klühs ◽  
Lukas Menkhoff
Keyword(s):  
Financial Literacy ◽  
Financial Inclusion ◽  
Cross Country

scholarly journals The Impact of Corruption On Economic Growth: A Nonlinear Evidence

2021 ◽  
Author(s):  
Mohamed Ali Trabelsi
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Detrimental Effect ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Country ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect ◽  
Effect On Growth

Abstract Several cross-country studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy.This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2018 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.JEL: B23, C51, D73, O47.

scholarly journals Digital Development of Regions: Current Status and Prospects

2021 ◽  
pp. 4-12
Author(s):  
Olga Larina ◽  
◽  
Natalia Moryzhenkova ◽  
Keyword(s):  
Financial Literacy ◽  
System Analysis ◽  
New Technologies ◽  
National Development ◽  
Financial Inclusion ◽  
Current Status ◽  
Economic Interest ◽  
Country Comparison ◽  
Digital Development ◽  
Cross Country

The goal of the research is to define the prospects of further digital growth in Russia and to assess the current state of national digitalization. Global digitalization is an ongoing tactical project for the introduction of new technologies in all areas of activity, as well as a strategic direction that will influence Russia’s future position in the world. Currently, the level of development of digital processes in our country is at the middle or low level (judging by some parameters). The article presents a cross-country comparison of various indicators and indices of digitalization. Methods used for the research were comparative analysis, analysis of legal documents, system analysis of sources. Apart from cross-country comparison, the article compares digitalization processes, financial inclusion and growth of financial literacy among the population. As a result of the study, a conclusion about the interconnection of these processes is made. Thus, the digitalization contributes to the growth of the financial inclusion level, and, on the other hand, financial literacy contributes to financial inclusion, while the indicated inclusion stimulates the growth of the GDP. In addition to that, active use of digital services, being the foundation of national digitalization growth, is observed among the population with economic interest and availability of free savings. The authors believe that further digital growth requires higher economic interest of the population in these processes. The research results can be reasonably applied when planning state programs for the development of digitalization. The overall digital development of the state is shaped by the development of these processes in the regions. This requires consistent work at the level of the said regions that are very dissimilar, both economically and digitally. Assessment of “digital maturity” of regions is a long-run objective necessary for effective monitoring of national development goals.

scholarly journals Analisis Pengaruh Literasi Keuangan, Financial Technology, dan Demografi terhadap Inklusi Keuangan pada Masyarakat di Kota Surabaya

2020 ◽  
Vol 8 (4) ◽  
pp. 1233
Author(s):  
Adinda Novita Sari ◽  
Achmad Kautsar
Keyword(s):  
Financial Literacy ◽  
Industrial Revolution ◽  
Statistical Tests ◽  
Financial Inclusion ◽  
Independent Variables ◽  
Analysis Technique ◽  
Quota Sampling ◽  
The City ◽  
Positive Effect ◽  
Financial Technology

Financial inclusion is one of the interesting discussions in global economic development. Indonesia is a country in ASEAN which has the most rapid increase in financial inclusion in recent years. In the era of the industrial revolution 4.0, everyone is required to be able to follow the development of existing technology and information. This study aims to determine the influence of independent variables (financial literacy, financial technology, demographics) on the dependent variable (financial inclusion) in the City of Surabaya. This study is a causality study with quota sampling. The data of this study is quantitative by collecting data by questionnaire. The data analysis technique used is multiple linear regression. The result of this study based on t statistical tests show that financial literacy, age, and education have a positive effect on financial inclusion. While the variables financial technology, gender, and income did not affect on financial inclusion. Based on the statistical test f, all of the independent variables simultaneously influence the dependent variable (financial inclusion).

Nexus between financial literacy and financial inclusion

2018 ◽  
Vol 36 (7) ◽  
pp. 1190-1212 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Research Design ◽  
Financial Institutions ◽  
Interaction Effect ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Content Type ◽  
Future Studies ◽  
The Poor ◽  
The Relationship

Purpose Premised on the argument that cognition structures the way how individuals think and make decisions, the purpose of this paper is to test the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Design/methodology/approach The study used cross-sectional research design and quantitative data were collected and analyzed using Statistical Package for Social Sciences. Baron and Kenny guidelines were adopted to test for existence of moderating effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Furthermore, ModGraph excel software was used to establish the magnitude of moderating effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Findings The results revealed that cognition significantly moderate the relationship between financial literacy and financial inclusion of the poor in rural Uganda. In addition, both cognition and financial literacy also have direct effects on financial inclusion of the poor in rural Uganda. Research limitations/implications The study adopted cross-sectional research design and data were collected by use of only questionnaires. Future studies through longitudinal research design may be employed. Besides, further studies using interviews may be adopted. Furthermore, this study collected data from only tier 3 financial institutions, thus, ignoring the other financial institutions. Future studies could focus on financial institutions under the other tiers. Practical implications The findings from the study enlightens policy-makers, managers of financial institutions, and financial inclusion advocates on the importance of cognition in enhancing financial literacy among the poor, especially in rural Uganda. Cognition combined with financial literacy helps the poor to make wise financial decisions and choices toward consuming financial services and products provided by formal financial institutions. This leads to increased scope of financial inclusion of the poor in rural Uganda. Therefore, advocates of financial literacy should assess community cultural cognition and utilize them to design and fashion effective financial literacy interventions that can promote financial inclusion. Originality/value The study uses Baron and Kenny and ModGraph excel software to test for the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. While several studies exist worldwide on financial inclusion, this study is the first to test the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural areas in a developing country context.

scholarly journals Financial Aberrations of Rural Customers of Business Correspondents: Characteristics, Cases and Curative Strategies

2021 ◽  
Vol 8 (3) ◽  
pp. 401-407
Author(s):  
Samirendra Nath Dhar ◽  
Pintu Prasad Jaiswal
Keyword(s):  
Financial Literacy ◽  
Longitudinal Research ◽  
Financial Inclusion ◽  
Literacy Programs ◽  
Significant Positive Effect ◽  
Literacy Programme ◽  
Male And Female ◽  
Longitudinal Research Design ◽  
Positive Effect ◽  
Financial Process

Financial Inclusion through Business Correspondents is not free from financial aberrations. On the basis of some cases the paper investigated into the types and frequency of the financial aberrations, which are incident on customers .The magnitude of shocks as perceived by the BC customers due to the financial process aberrations and irregularities were gauged on a Likert scale and was found to be significantly high. As these shocks have a bearing on financial resilience, the research further attempted to investigate whether awareness of dealing with the system and thereby increasing financial resilience could be developed through financial literacy programs. A longitudinal research design was adopted and 17-18% of the male and female respondents from each district were exposed to a financial literacy programme in this context as devised by the researchers. It was found that the administration of the program on poor BC customers had a significant positive effect on their awareness and therefore on their build-up of financial resilience. Int. J. Soc. Sc. Manage. Vol. 8, Issue-3: 401-407.

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