Determinants and Impacts of Financial Literacy in Cambodia and Viet Nam
Morgan, Peter J.; Trinh, Long Q. | June 2017
Abstract
Financial literacy is gaining increasing importance as a policy objective in many countries. However, internationally comparable information on financial literacy is still scarce. The OECD/INFE survey of adult financial literacy is a standardized survey instrument, but so far has mainly been implemented in higher-income countries outside of Asia. Our paper extends the literature by conducting the survey in two relatively low-income Asian economies—Cambodia and Viet Nam—and analyzing the determinants of financial literacy and the effects of financial literacy on other behaviors.
Generally our study corroborates the findings of studies of other countries, but uncovers some differences as well. The overall scores of financial literacy in Cambodia (11.5) and Viet Nam (12.0) are at the low end of the range seen in a sample of 30 countries that have implemented the OECD/INFE survey, but they can be considered normal or even high in view of the relatively low levels of per capita income in those two countries. The main determinants of financial literacy are found to be educational level, income, age, and occupational status. Both financial literacy and general education levels are found to be positively and significantly related to savings behavior and financial inclusion, and these results hold even when correcting for possible endogeneity of financial literacy, except for financial literacy in the case of formal savings products in Viet Nam.
Citation
Morgan, Peter J.; Trinh, Long Q.. 2017. Determinants and Impacts of Financial Literacy in Cambodia and Viet Nam. © Asian Development Bank Institute. http://hdl.handle.net/11540/7180.Keywords
Taxation
Public Accounting
National Budget
Municipal Bonds
Local Government
Local Taxes
International Monetary Relations
International Financial Market
International Banking
Central Banks
Business Financing
Capital Resources
Budgetary Policy
Capital Needs
Corporate Divestiture
Capital Instruments
Pension Funds
Insurance Companies
Banks
Portfolio Management
Fiscal Administration
Economics of Education
Development Banks
Scaling-Up And Evaluation
Results-Based Monitoring And Evaluation
Public Policy Evaluation
Impact Evaluation
Performance Evaluation
Urban Development Finance
Trade Finance
Small Business Finance
Rural Finance
Roundtable on International Trade and Finance
Regional Development Finance
Public Service Finance
Public Finance
Project Finance
Private Finance
Nonbank Financing
Non-Bank Financial Institutions
Municipal Finance
Local Government Finance
Local Currency Financing
Limited Resource Financing
International Financial Institutions
Infrastructure Financing
Industrial Finance
Government Financial Institutions
Government Finance
Financing of Infrastructure
Financial Sector Development
Financial Regulation
Economic evaluation
Ecomnomic Forcast
Resources evaluation
Input output analysis
Cost benefit analysis
Foreign and Domestic Financing
Use tax
Taxing power
State of taxation
Tax-sales
Tax revenue estimating
Tax planning
Spendings tax
Special assessments
Tax administration and procedure
Sales tax
Real property and taxation
Progressive taxation
Effect of taxation on land use
Effect of taxation on labor supply
Intergovernmental tax relations
Inheritance and transfer tax
Energy tax
Risk assessment
Economic policy
Economic forecasting
Cost effectiveness
Participatory monitoring and evaluation
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