IDEAS home Printed from https://ideas.repec.org/a/jfr/rwe111/v10y2019i5p104-112.html
   My bibliography  Save this article

Economic Literacy: Does It Matter for Policy Understanding?

Author

Listed:
  • Ramlee Ismail
  • Mohd Yahya Mohd Hussin
  • Fidlizan Muhammad

Abstract

The quality of human capital is indispensable for economic growth and sustainability. The developed nations have shown evidence of a positive relationship between education and economic development. In all respects, a better understanding of economics among citizens has led to more efficiency in implementing economic policies. In this paper, we explore a possible relationship between economic literacy and policy understanding. Policy knowledge, interest and explanation are measured through policy understanding. This study used the students¡¯ teachers as a sample and found that economic literacy was below 50 per cent. Meanwhile, the level of policy understanding was moderate. Interestingly, our findings showed that economic literacy is not strongly associated with economic policy understanding. Policy interest appeared as an important element for policy understanding among the sample. In a volatile economic environment, the level of economic knowledge among the population is a vital factor for the implementation of economic policies. A further investigation must be conducted to assess this issue.

Suggested Citation

  • Ramlee Ismail & Mohd Yahya Mohd Hussin & Fidlizan Muhammad, 2019. "Economic Literacy: Does It Matter for Policy Understanding?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 104-112, December.
    • Handle: RePEc:jfr:rwe111:v:10:y:2019:i:5:p:104-112
    DOI: 10.5430/rwe.v10n5p104
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/16941/10533
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/16941
    Download Restriction: no
    File URL: https://libkey.io/10.5430/rwe.v10n5p104?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Mujtaba & Sadaf Jamal & Yaseen Shaikh, 2018. "Development without Human Resource Development (HRD): Analysis of HRD Policy of Pakistan," Asian Themes in Social Sciences Research, Knowledge Press, vol. 2(1), pages 9-15.
    2. Gary H. Stern, 2002. "Economic literacy leads to better grasp of public policy issues," The Region, Federal Reserve Bank of Minneapolis, vol. 16(Dec.), pages 2-5.
    3. Abdullah Ibrahim Nazal, 2017. "Financial Tables Reports Gaps in Jordanian Islamic Banks," The Economics and Finance Letters, Conscientia Beam, vol. 4(2), pages 9-15.
    4. Chiara Gratton-Lavoie & Andrew Gill, 2009. "A Study of High School Economic Literacy in Orange County, California," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 433-451.
    5. Caplan, Bryan, 2001. "What Makes People Think Like Economists? Evidence on Economic Cognition from the "Survey of Americans and Economists on the Economy."," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 395-426, October.
    6. Kamilia Loukil, 2017. "Technological Innovation in Central and Eastern Europe: What’s the Contribution of Innovation Policy?," The Economics and Finance Letters, Conscientia Beam, vol. 4(1), pages 1-8, 03-2017.
    7. Tullio Jappelli, 2010. "Economic Literacy: An International Comparison," Economic Journal, Royal Economic Society, vol. 120(548), pages 429-451, November.
    8. Roger B. Butters & Carlos J. Asarta, 2011. "A Survey of Economic Understanding in U.S. High Schools," The Journal of Economic Education, Taylor & Francis Journals, vol. 42(2), pages 200-205, June.
    9. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 497-508, October.
    10. William C. Wood & Joanne M. Doyle, 2002. "Economic Literacy Among Corporate Employees," The Journal of Economic Education, Taylor & Francis Journals, vol. 33(3), pages 195-205, September.
    11. repec:pkp:teafle:2017:p:9-15 is not listed on IDEAS
    12. Bryan Caplan, 2002. "Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy," Economic Journal, Royal Economic Society, vol. 112(479), pages 433-458, April.
    13. Zakaria Sandy Pamungkas & Nonoh Siti Aminah & Fahru Nurosyid, 2019. "Fulfilment National Standard Education toward Achievement of Critical Thinking Ability and Science Process Skill in Indonesia," American Journal of Social Sciences and Humanities, Online Science Publishing, vol. 4(4), pages 571-580.
    14. Aboubakari MOUSSA, 2018. "Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?," Journal of Social Economics Research, Conscientia Beam, vol. 5(2), pages 85-93.
    15. Muhammad Mujtaba & Sadaf Jamal & Jawaid Ahmed Qureshi & Yaseen Shaikh, 2018. "Human Capital is a Competitive Advantage of Businesses: Analysis of Automobile Firms of Pakistan," Asian Themes in Social Sciences Research, Knowledge Press, vol. 2(1), pages 16-22.
    16. Lopus, Jane S. & Amidjono, Dwi Sulistyorini & Grimes, Paul W., 2019. "Improving financial literacy of the poor and vulnerable in Indonesia: An empirical analysis," International Review of Economics Education, Elsevier, vol. 32(C), pages 1-1.
    17. Muhammad Mujtaba & Sadaf Jamal & Yaseen Shaikh, 2018. "Development without Human Resource Development (HRD): Analysis of HRD Policy of Pakistan," Asian Themes in Social Sciences Research, Knowledge Press, vol. 2(1), pages 9-15.
    18. Walstad, William B, 1992. "Economics Instruction in High Schools," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2019-2051, December.
    19. Alice M. Rivlin, 1999. "On economic literacy," The Region, Federal Reserve Bank of Minneapolis, vol. 13(Jun), pages 14-17.
    20. Michael K. Salemi, 2005. "Teaching Economic Literacy: Why, What and How," International Review of Economic Education, Economics Network, University of Bristol, vol. 4(2), pages 46-57.
    21. Tang, Tommy, 2019. "Assessment of economic threshold concepts in higher education," International Review of Economics Education, Elsevier, vol. 30(C), pages 1-1.
    22. Aboubakari MOUSSA, 2018. "Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?," Journal of Social Economics Research, Conscientia Beam, vol. 5(2), pages 85-93.
    23. Muhammad Mujtaba & Sadaf Jamal & Jawaid Ahmed Qureshi & Yaseen Shaikh, 2018. "Human Capital is a Competitive Advantage of Businesses: Analysis of Automobile Firms of Pakistan," Asian Themes in Social Sciences Research, Knowledge Press, vol. 2(1), pages 16-22.
    24. Kamilia Loukil, 2017. "Technological Innovation in Central and Eastern Europe: What’s the Contribution of Innovation Policy?," The Economics and Finance Letters, Conscientia Beam, vol. 4(1), pages 1-8.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wobker, Inga & Lehmann-Waffenschmidt, Marco & Kenning, Peter & Gigerenzer, Gerd, 2012. "What do people know about the economy? A test of minimal economic knowledge in Germany," Dresden Discussion Paper Series in Economics 03/12, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    2. Robert G. Valletta & K. Jody Hoff & Jane S. Lopus, 2014. "Lost In Translation? Teacher Training And Outcomes In High School Economics Classes," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 695-709, October.
    3. Nek Kamal Yeop & Norasibah Abdul Jalil, 2010. "Economic Literacy amongst the Secondary School Teachers in Perak Malaysia," Information Management and Business Review, AMH International, vol. 1(2), pages 69-78.
    4. Bryan Caplan & Edward Stringham, 2005. "Mises, bastiat, public opinion, and public choice," Review of Political Economy, Taylor & Francis Journals, vol. 17(1), pages 79-105.
    5. Mamba, Essotanam & Ali, Essossinam, 2022. "Do agricultural exports enhance agricultural (economic) growth? Lessons from ECOWAS countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 257-267.
    6. Elsa Fornero, 2015. "Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter," Bankers, Markets & Investors, ESKA Publishing, issue 134, pages 6-16, January-F.
    7. Natalia Mishagina & Claude Montmarquette, 2018. "The Demand for Economic Policies, Beliefs, and Willingness-to-Pay: The Case of the Minimum Wage Policy in Quebec," CIRANO Project Reports 2018rp-14, CIRANO.
    8. Levy, Daniel & Snir, Avichai, 2022. "Potterian Economics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1, pages 1-32.
    9. Mawuna Donald Houessou & Annemijn Cassee & Ben G. J. S. Sonneveld, 2021. "The Effects of the COVID-19 Pandemic on Food Security in Rural and Urban Settlements in Benin: Do Allotment Gardens Soften the Blow?," Sustainability, MDPI, vol. 13(13), pages 1-18, June.
    10. Alessie, Rob & Angelini, Viola & van Santen, Peter, 2013. "Pension wealth and household savings in Europe: Evidence from SHARELIFE," European Economic Review, Elsevier, vol. 63(C), pages 308-328.
    11. Kadoya, Yoshihiko & Khan, Mostafa Saidur Rahim, 2020. "What determines financial literacy in Japan?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 19(3), pages 353-371, July.
    12. Andrej Cupák & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2021. "Exploring Differences in Financial Literacy Across Countries: The Role of Individual Characteristics and Institutions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 409-438, December.
    13. Bucher-Koenen, Tabea & Lamla, Bettina, 2014. "The long Shadow of Socialism: On East-West German Differences in Financial Literacy," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100585, Verein für Socialpolitik / German Economic Association.
    14. Berg, Nathan & Biele, Guido & Gigerenzer, Gerd, 2010. "Does consistency predict accuracy of beliefs?: Economists surveyed about PSA," MPRA Paper 26590, University Library of Munich, Germany.
    15. Klein, Daniel B. & Stern, Charlotta, 2005. "Narrow-Tent Democrats and Fringe Others: The Policy Views of Social Science Professors," Working Paper Series 8/2005, Stockholm University, Swedish Institute for Social Research.
    16. Yu Zhang & Swarn Chatterjee, 2023. "Financial Well-Being in the United States: The Roles of Financial Literacy and Financial Stress," Sustainability, MDPI, vol. 15(5), pages 1-18, March.
    17. Mário Antão, 2022. "Financial Literacy as a Strategic issue: A survey from Portuguese Higher Education Students ," GATR Journals jber227, Global Academy of Training and Research (GATR) Enterprise.
    18. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2015. "Financial literacy and financial planning: Evidence from India," Journal of Housing Economics, Elsevier, vol. 27(C), pages 4-21.
    19. Kenneth De Beckker & Kristof De Witte & Geert Van Campenhout, 2020. "The role of national culture in financial literacy: Cross‐country evidence," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 912-930, September.
    20. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:rwe111:v:10:y:2019:i:5:p:104-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gina Perry (email available below). General contact details of provider: http://rwe.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.