This study examines if enhancing ICT reduces inequality in 48 countries in Africa for the period 2004-2014. Three inequality indictors are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. The adopted ICT indicators include: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on the Generalised Method of Moments. Enhancing internet penetration and fixed broadband subscriptions have a net effect on reducing the Gini coefficient and the Atkinson index, whereas increasing mobile phone penetration and internet penetration reduces the Palma ratio. Policy implications are discussed in the light of challenges to Sustainable Development Goals.

How Enhancing Information and Communication Technology has affected Inequality in Africa for Sustainable Development: An Empirical Investigation

The goal of this research is to see how financial behavior, attitudes, and literacy affect student investment decisions. Students from South Jakarta serve as case studies in this study. This study is quantitative, meaning it uses numbers as a baseline. The information was gathered by an online questionnaire that was distributed to 110 people using a purposive sample technique. With the help of the SmartPLS application, the data analysis technique used was partial least square. Financial behavior, financial attitudes, and financial literacy all have a major impact on investment decisions, according to the findings of this study, however financial literacy cannot regulate investment decisions made by students in South Jakarta.

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The Influence of Behavior Financial and Financial Attitude on Investment Decisions With Financial Literature as Moderating Variable

Financial inclusion has a wide range of positive effects on sustainable development, but studies indicate a lack of awareness about financial services in the large group of financially excluded individuals within the economy. This paper examines the mediating effects of financial literacy and the moderating role of social capital on the relationship between financial inclusion and sustainable development in Cameroon. A PLS-SEM model was used with 488 collected samples as empirical data from the residents of the Douala and Buea municipalities in Cameroon through a questionnaire survey. Financial inclusion was found to be positive and significantly related to financial literacy, and to have a positive and significant impact on sustainable development. Financial literacy and social capital positively and significantly affect sustainable development in Cameroon. However, financial literacy mediates, while social capital does not moderate the relationship between financial inclusion and sustainable development. The mediation is complementary because both the direct and indirect relationships are significant. The findings and contributions of this study provide useful insights and practical implications for financial institutions and governments, especially in developing countries. It provides empirical evidence and a better understanding of the link between financial inclusion and sustainable development, and the mediating effects and moderating role of financial literacy and social capital.

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The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon

Financial Inclusion, Social Exclusion, Social Capital, and Psychological Theories of Poverty in the Fourth Industrial Revolution

Social capital is essential in mediating financial inclusion. We employ broader horizontal and vertical social engagement of social capital such as bonding, bridging and linking. Meanwhile, financial inclusion is defined as saving ownership in a formal financial institution. Using a logistic regression model and a sample of 74,454 individual respondents from the 2018 National Socioeconomic Survey, we found that social capital is essential in promoting formal saving behavior. Among three indicators (bonding, bridging, and linking), the results show that a rise in the bridging variable was associated with a 10 per cent higher likelihood of having a formal savings, higher in magnitude than the linking variable. Bonding variable had no effect in promoting financial inclusion, but upon further observation, it was still suitable to be implemented in rural area. Our estimates justified the presence of financial information transmission among people in their respective social circles. Our findings suggest that the government should consider a financial campaign using a community-based approach to complement the current inclusion strategy.JEL Classification:  D14; G41; O17

More networks, more financial inclusion? An empirical evidence from Indonesia

The need for improved institutional interventions aimed at increasing access to financial services by small and medium enterprises (SMEs) has been emphasized. Complimenting these efforts, this study proposes that building social networks capable of informing requisite financial behaviors would facilitate the financial inclusion of SMEs co-existing in business clusters. This study aimed to empirically test the moderating influence of collective action, bonding, trust, and bridging on the effect of financial behavior on financial inclusion. Using a sample of 311 owners/managers of small and medium scale businesses in sub-urban clusters in South-Eastern Nigeria, the hierarchical moderated regression analysis was used to test the hypotheses of the study. Results show a positive main effect of financial behavior on financial inclusion (βf = 0.162; t (304) = 1.503; p &lt; 0.05). Also, collective action (βfca = 0.201; t (304) = 6.906; p &lt; 0.05) and bridging (βfbr = 0.201; t (304) = 6.906; p &lt; 0.05) had positive moderating effects, bonding (βfb = 0.032; t (304) = 1.423; p &gt; 0.05) and trust (βft = 0.014; t (304) = 0.9609; p &gt; 0.05) were statistically insignificant. For policy implications, social virtues such as bridging and collective action are more veritable tools for financial inclusion than the personal virtues of trust and bonding and should be factored into economic and social intervention being deployed by institutions interested in meeting the banking/financial needs of businesses.

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Ifeoma Onodugo

Papers

Moderating role of social capital on the effect of financial behavior on financial inclusion