Financial literacy and poverty reduction: The case of Indonesia

Arbeitspapier

Given its role in affecting financial behavior, financial literacy has received considerable attention from researchers and policy makers alike. This paper employs data from a nationally representative survey in Indonesia to investigate the impact of financial literacy on poverty, which is a downstream welfare indicator. Consequently, we have constructed a composite financial literacy index. Our results reveal that financial literacy plays an important role in reducing poverty. This finding is robust, irrespective of the measure of financial literacy and regardless of the instrumentalization strategy adopted.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper Series ; No. 1097

Classification and Topics

• Classification: Wirtschaft ; Measurement and Analysis of Poverty
• Subject: financial literacy ; poverty ; developing countries

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Askar, Media Wahyudi ; Ouattara, Bazoumana ; Zhang, Yin-Fang
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/238454
• Last update: 10.03.2025, 11:43 AM CET