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Religiosity and the adoption of formal financial services

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  • Ji, Yaling

Abstract

Recent studies have suggested that institutional and economic factors are important drivers of financial inclusion. However, the effects of culture on the usage and adoption of formal financial services are not as widely understood. This paper explores the impact of religiosity on financial inclusiveness, utilizing aggregated data from individuals’ religious preferences and financial behaviors. The results suggest that higher levels of religiosity are negatively associated with the usage and adoption of formal financial services, both across U.S. states and across different countries. To explore possible causal implications, we exploit spatial variations in historical pathogen prevalence as the main instrument of our study.

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  • Ji, Yaling, 2020. "Religiosity and the adoption of formal financial services," Economic Modelling, Elsevier, vol. 89(C), pages 378-396.
    • Handle: RePEc:eee:ecmode:v:89:y:2020:i:c:p:378-396
    DOI: 10.1016/j.econmod.2019.11.002
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    More about this item

    Keywords

    Religiosity; Financial inclusiveness; Pathogen prevalence;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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