Childhood matters: Family education and financial inclusion

Yi, Yu; Qi, Shusen

doi:10.1016/j.pacfin.2020.101489

Cited by 17 publications

(12 citation statements)

References 21 publications

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“…Alternatively, completing secondary and tertiary education levels have a positive significant relationship with financial inclusion-gender equality. In line with previous studies, advanced education levels increase financial inclusion-equality based index (Arora, 2012;Cicchiello, Kazemikhasragh, Monferrá, et al, 2021;Mouna & Jarboui, 2021;Yan & Qi, 2021). The results with the interaction of Covid-19 restrictions show that all education levels increase financial inclusion in Latin American countries.…”

Section: Resultssupporting

confidence: 91%

Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean

Kazemikhasragh

Pineda

2022

Review Development Economics

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Financial inclusion and education contribute to a country's development and economic growth. However, despite the significant efforts being made to increase access to financial products for women, a high percentage still do not have access to and effective use of formal financial services in the countries of Latin America and the Caribbean. This study analyzes financial inclusion (based on gender equality) in the countries studied using a pooled‐panel ordinary least squares econometric technique. Furthermore, the impact of interactions between the level of study, use of technology, academic degree during the Covid‐19 restrictions, number of credit borrowers, and number of borrowers with the interaction of the restrictions during the health emergency was evaluated employing the Gini coefficient and human development index (HDI). This study confirms that Latin America and the Caribbean countries can increase financial inclusion by changing their social aspects based on gender equality to ease using technology and access to credit. The results of this study are helpful for policy‐makers in formulating and implementing policies that lead to action plans that reverse an exclusionary financial system, promote financial education, and empower women.

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Section: Resultssupporting

confidence: 91%

Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean

Kazemikhasragh

Pineda

2022

Review Development Economics

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“…The former covers not only financial knowledge, but also financial behavior and attitudes. Yan and Qi (2020) investigated the impact of family education on the financial inclusion of individuals. Based on micro-level data on 22,242 individuals from 27 emerging countries, the empirical results showed that enhancement in the quality of family education increases the probability of opening a bank account by a family member.…”

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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“…Several factors help explain the use of financial services by people and firms. One of the factors that have shown to be relevant is users' education (Ahmad et al, 2020;Allen et al, 2016;Fungáčová & Weill, 2015;Ghosh & Vinod, 2017;McKenzie & Woodruff, 2017;Wang & Guan, 2017;Yan & Qi, 2021;Zins & Weill, 2016). Allen et al (2016) found for a sample of more than 140 countries, that having a bank account is higher for people with at least 8 years of education than for those with lower years.…”

Section: Heterogeneitymentioning

confidence: 99%

“…McKenzie and Woodruff (2017) argue that it seems more likely that more educated people will find easier to learn and adopt business practices. Yan and Qi (2021) who examine family education and individuals' decisions to open bank accounts for a sample of 27 emerging economies interestingly found that family education improves positively the likelihood of family individuals opening bank accounts. A recent review by Ahmad et al (2020) on mobile money highlights the contribution of education in the decisions of individuals to use this increasingly important financial instrument.…”

Section: Heterogeneitymentioning

confidence: 99%

“…Stiglitz and Weiss (1981) pioneered the literature on small businesses' access to financial services by highlighting that MSMEs often lack access to such services due to information asymmetries between credit providers and small business applicants. Recent literature has focused on small and medium-sized enterprises (Allen et al, 2016;Demirgüç-Kunt, 2013;Gabor & Brooks, 2017;Ouma et al, 2017;Zins & Weill, 2016;Wang & Guan, 2017), and focus on classic determinants of financial inclusion such as formality (Dabla-Norris & Koeda, 2008;De Mel et al, 2013;McKenzie & Sakho, 2010;Rodríguez Zamora, 2018), gender (Fowowe, 2017;Zins & Weill, 2016), education (Ahmad et al, 2020;Allen et al, 2016;Fungáčová & Weill, 2015;Ghosh & Vinod, 2017;McKenzie & Woodruff, 2017;Wang & Guan, 2017;Yan & Qi, 2021;Zins & Weill, 2016), among others (Geraldes et al, 2022;Salignac et al, 2016). Less is known about the specific case of microbusinesses, which face particular conditions compared with the other MSMEs (Prijadi et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

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Financial inclusion and business practices of microbusiness in Colombia

2023

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Financial inclusion is known to be relevant for improving the growth perspectives of microbusinesses. This research has three aims. First, to explore how adopting business practices can impact the usage of financial products and services of these firms. Second, to determine if higher levels of microbusinesses’ formalization mediate the impact. Third, to establish if there are differences according to gender and education level. A structural equation model was estimated to test these hypotheses while considering the potential endogeneity of the main variables of interest. The model includes latent variables modeled in the form of confirmatory factor analysis. Estimates are based on self-reported information collected through a survey of 1542 microentrepreneurs in 10 Colombian cities in 2019. The results show that microentrepreneurs who adopt (more) business practices have more financial inclusion. No specific category of business practices drives the results. The effect is larger for men than women and is not present for microentrepreneurs of low education levels. Furthermore, personal initiative, a psychological construct, indirectly relates to being more financially included by increasing the adoption of business practices. Finally, there is no evidence that this is driven by higher levels of formalization regardless of the specific set of requirements that are considered. Our findings support efforts to improve business skills in microentrepreneurs and call for more comprehensive public policy strategies. These findings open the door to using soft skill-based training programs that enhance business practices, to improve microbusinesses’ financial inclusion.

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Childhood matters: Family education and financial inclusion

Cited by 17 publications

References 21 publications

Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean

Financial inclusion and education: An empirical study of financial inclusion in the face of the pandemic emergency due to Covid‐19 in Latin America and the Caribbean

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

Financial inclusion and business practices of microbusiness in Colombia

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