The Relative Impact of Income and Financial Literacy on Financial Inclusion in Nigeria

Adetunji, Olubanjo Michael; David‐West, Olayinka

doi:10.1002/jid.3407

Cited by 60 publications

(51 citation statements)

References 22 publications

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“…With this, we argue that new policies should aim to increase financial literacy so that people can use their financial services effectively. Indeed, the financial literacy issue was previously commented by Park and Mercado ( 2017 ), Grohmann et al ( 2018 ) and Adetunji and David-West ( 2019 ). Also, Carballo ( 2017 ) comments on how the complexity of financial services drives people away from its use and from optimal choices.…”

Section: Discussion and Policy Implicationsmentioning

confidence: 95%

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

et al. 2021

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Despite great developmental efforts in recent decades, Latin America still presents high levels of poverty and inequality when compared to developed nations. As explored widely in the literature, one potential instrument to diminish these issues is financial inclusion, including the access and usage of financial services by all people. Specifically, this paper verifies if financial inclusion and technology adoption decrease the poverty headcount ratio and the Gini index (i.e., inequality) of 13 Latin America countries (Argentina, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Panama, Paraguay, Peru, and Uruguay). To perform such analysis, an unbalanced panel dataset was built, and the Feasible Generalized Least Squares (FGLS) and the Limited Information Maximum Likelihood (LIML) techniques were employed. The results suggest that, in accordance with previous studies, financial inclusion is a powerful tool to tackle poverty and inequality. Additionally, the combined effects of financial inclusions and technology (i.e., mobile use) are also capable of decreasing the poverty and inequality levels. We discuss the policy implications of our findings and suggest a future research agenda.

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Section: Discussion and Policy Implicationsmentioning

confidence: 95%

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

et al. 2021

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“…Using data from Zimbabwe, Murendo and Mutsonziwa (2016) found that a one index point increase in financial literacy increased the probability of savings by 18 and 13 percent for rural and urban individuals, respectively. Moreover, the probability of individuals' participation in formal and informal savings would increase by 65 percent for each unit of improvement in financial literacy (Adetunji and David, 2019). However, Grohmann (2018) argued that individuals with high financial literacy were more likely to own assets other than a savings account, and were less likely to have life insurance because the return rate was lower.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Financial Literacy on Retirement Financial Portfolio: Evidence from China*

Sun

Zhang

Turvey

et al. 2021

Asian Economic Journal

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Financial literacy is an important factor that affects financial assets saved for retirement. Based on the China Household Finance Survey (2017) data and the two‐stage life cycle model, we study the impact of financial literacy on retirement financial portfolios. The findings are as follows: (i) financial literacy has a significant positive impact on the choice of wealth management products, risky financial assets and the total amount of retirement financial assets, but it has a negative impact on the choice of bank savings; (ii) financial literacy has a significant negative impact on the proportion of savings but has a significant positive impact on the proportion of wealth management products and risky financial assets; and (iii) using a different financial literacy index, considering selection bias and the influence of financial practitioners in the household, we prove the reliability of the above results. The paper highlights the importance of financial education and provides strong support for public (government) involvement to strengthen financial literacy education and improve the awareness of retirement financial planning to reduce the financial pressures faced by many of China's elderly citizenry.

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“…In line with Shah's research [23] states that banks are the only institution finance which is already widely used by the population of India. Another study states that financial literacy significantly determines savings patterns with formal and informal financial institutions; however, income only drives the frequency of informal savings [2]. Therefore banks must provide maximum services so that even villagers can enjoy banking product services.…”

Section: Resultsmentioning

confidence: 99%

“…Over the past few years, financial literacy has been a particular concern for world researchers. This is due to the increased interest in learning financial literacy [1]; [2] specifically personal financial planning [3]; [4]; [5] to deal with the possibility of changes that occur in global financial markets. Research conducted by the OECD in 2012 and continued in 2015, the study aims to find out the level of financial literacy of the population in OECD countries.…”

Section: Introductionmentioning

confidence: 99%

Reveal of household capabilities through financial literacy in community-based tourism

et al. 2020

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The purpose of this study is to determine the extent of the condition of household financial literacy in community-based tourism which has continued to develop. Another thing that is also being studied knows the right way that households in the community-based tourism area are more empowered by increasing their financial literacy. In this research, the approach used is descriptive qualitative by conducting field studies to explore information from questionnaires given to respondents who are households in the community-based tourism area. Then conclude through purposive question to be able descripting real conclusions. The findings of this study indicate that not many households in community-based tourism are well literate with a low level of financial knowledge, so they are still unable to optimize the income they receive. There is a scheme from the government to help improve the welfare of the community in community-based tourism areas with financial assistance and financial knowledge. This research only conducts studies in certain areas in the area around Junrejo municipality, Batu, East Java. The location is an area that has community groups that mostly have livelihoods as provider of tourism good and services.

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The Relative Impact of Income and Financial Literacy on Financial Inclusion in Nigeria

Cited by 60 publications

References 22 publications

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

Impact of Financial Literacy on Retirement Financial Portfolio: Evidence from China*

Reveal of household capabilities through financial literacy in community-based tourism

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