Financial literacy, financial inclusion, and savings behavior in Laos

Morgan, Peter J.; Long, Trinh Quang

doi:10.1016/j.asieco.2020.101197

Cited by 161 publications

(143 citation statements)

References 30 publications

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“…Previous research works, which focused on marginalized groups, have reported that financial literacy has impact on financial inclusion (Grohmann et al , 2018; Martinez et al , 2013; Morgan and Long, 2020; Noor et al , 2020). Similarly, Bongomin et al (2016) advocated that financial literacy has influence on financial inclusion through social capital (mediating variable) in general.…”

Section: Discussionmentioning

confidence: 99%

Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Nandru

Madhavaiah

Velayutham

2021

IJSE

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PurposeThe study attempts to explore the determinants of financial inclusion. Subsequently, it examines the effect of financial inclusion on financial well-being of marginalized street vendors in India.Design/methodology/approachThe demand-side analysis of measuring financial inclusion with a sample of 371 marginalized street vendors is adopted. Both exploratory and descriptive research designs are employed in this study. The primary data collection is done by administering the structured interview schedule by using a convenience sampling technique. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) are performed to describe the latent constructs and their hypothetical relationships with adequate empirical evidence.FindingsOut of five dimensions of financial inclusion considered for the study, accessibility, availability, usage and affordability are found to be significant determinants of financial inclusion; however, the financial literacy dimension is found statistically insignificant. Further, the study results confirm that financial inclusion contributes substantially to the well-being of marginalized street vendors.Research limitations/implicationsThe outcome of the study will facilitate all the stakeholders including policymakers and financial institutions to enact policy guidelines to ensure financial well-being of the marginalized street vendors through financial inclusion initiatives.Originality/valueFinancial well-being through financial inclusion is possible even without the effect of financial literacy from the unorganized sector perspective specifically marglianized street vendors. Thus, it adds new dimension to the existing literature on demand side analysis of measuring financial inclusion.

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Section: Discussionmentioning

confidence: 99%

Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Nandru

Madhavaiah

Velayutham

2021

IJSE

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“…This correlation is pronounced among poor populations, those living in rural areas and the unemployed ones. Morgan and Long (2020) studied the impact of financial education on financial inclusion based on data collected by the Organisation for Economic Co-operation and Development (OECD) survey on financial education. Empirical results indicate that financial literacy has a positive impact on both financial inclusion and savings.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial inclusion, mobile banking, informal finance and financial exclusion: micro-level evidence from Morocco

Ezzahid

Elouaourti

2021

IJSE

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PurposeThis study has a dual purpose. The first is constructing a financial inclusion index to investigate if the reforms implemented during the last decades at the macroeconomic and sectoral levels have contributed to increase the financial inclusion level in Morocco. The second is to deepen the investigation to explore the impact of these reforms at the microeconomic level, by focusing on six major issues: determinants of financial inclusion, links between individual characteristics and barriers to financial inclusion, determinants of mobile banking use, motivations for saving, credit objectives and determinants of resorting to informal finance.Design/methodology/approachFirst, the principal component analysis methodology is mobilized to construct a financial inclusion index for Morocco. Second, the probit model methodology on a micro-level database of 5,110 Moroccan adults is used.FindingsFirst, the financial inclusion index shows that financial inclusion in Morocco over the last two decades has followed different trends. The first period (1999–2004) was characterized by a slight upswing in the level of financial inclusion. In the second period (2004–2012), the level of financial inclusion increased significantly. During the third period (2012–2019), the financial inclusion maintained almost the same level. Second, empirical results showed that the determinants of formal finance and mobile banking are different from those of informal finance. Having a high educational attainment and being a participant in the labor market fosters financial inclusion. Concerning financial exclusion determinants, the results emphasized that a high educational attainment reduces the barriers leading to voluntary exclusion. As income level increases, barriers of involuntary exclusion such as “lack of money” become surmountable. Although "remoteness" and "high cost" are the major barriers to financial inclusion of all Moroccan social classes, the development of mobile banking allows to eliminate, smoothen and/or loosen all barriers sources of involuntary exclusion. As for the barriers causing voluntary exclusion, the Islamic finance model constitutes a lever for the inclusion of population segments excluded for religious reasons. As for the determinants of the recourse to informal finance, being a woman, an older person and having a low educational level (no more than secondary education) increase the probability to turn to informal finance.Research limitations/implicationsThe main limitation of this study is the non-availability of data on the two dimensions (quality and welfare) of financial inclusion. The composite index is constructed on the basis of two dimensions (access and use) for which data are available.Practical implicationsThis study has three main implications. In practice, with the launching of the National Strategy for Financial Inclusion, this work provides empirical grounded evidence that contributes to design financial inclusion policies in Morocco. In research, while the debate on financial inclusion, mobile banking and informal finance has been raging in recent years, Morocco, like many other African countries, has not received coverage on these topics at the household level.Social implicationsFor society, this study provides considerable insight about the segments of population that are financially excluded and the main reasons for their exclusion.Originality/valueThis study enriches the existing literature with four essential contributions. First, it analyzes the evolution of the level of financial inclusion in the Moroccan economy through the development of a synthetic index. Second, it is the first to study the Moroccan population's financial behavior on the basis of micro-level data, which will help understand more precisely their financial behavior and the main obstacles to their inclusion. Third, this study explores the determinants of the use of mobile banking. Fourth, it sheds some light on the main determinants of the recourse to informal finance.

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“…Babiarz & Robb (2014) found that households with higher financial literacy are more likely to save for an emergency. Morgan & Long (2020) surveyed in 8 states of Loas using multilevel stratification sampling. Their study also found that financial literacy has positive effects on savings.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Financial Literacy on Individual Saving: A Study in the Omani Context

Uddin

2020

RWE

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This exploratory study examines the effect of financial literacy (henceforward FL) on savings. A survey was conducted on 200 individuals in Oman for this study. Apart from FL, socio-demographics such as gender, age, and education were also analyzed. Data analysis was done using logistic regression. The results show that the level of FL had a significant, positive impact on individual savings. Also, demographics, such as age, educational level influenced the probability of saving positively. Results of this study advocate that it is important to increase financial literacy as it leads to more savings and thus helps in providing investment for the diversification of the Omani economy.

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Financial literacy, financial inclusion, and savings behavior in Laos

Cited by 161 publications

References 30 publications

Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Financial inclusion, mobile banking, informal finance and financial exclusion: micro-level evidence from Morocco

Impact of Financial Literacy on Individual Saving: A Study in the Omani Context

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