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Financial Capability in Ethiopia: A Case Study of Addis Ababa City

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  • Miheretu Kebede Lemu

Abstract

This study investigates financial knowledge, behavior and attitude of individuals to gauge how the financial market evaluates an individual's financial capability and financial decision making. Higher financial knowledge increases the entry into sophisticated financial contracts and the understanding of contemporary featured new financial products as well as good financial decision making. Financial behavior also enhances the financial decision making of those individuals as well as the relationship between individuals and their behavior towards saving, investment, cash and credit. These effects are intensified by individuals' financial behavior, the level of relationship with investments, savings and the use of credit. This study found out that a deeper acquaintance of individuals on financial knowledge, attitude and behaviour results in positive consequences on their relations with financial service providers and in turn promotes to financial capability.

Suggested Citation

  • Miheretu Kebede Lemu, 2020. "Financial Capability in Ethiopia: A Case Study of Addis Ababa City," Business and Economic Research, Macrothink Institute, vol. 10(3), pages 245-254, September.
    • Handle: RePEc:mth:ber888:v:10:y:2020:i:3:p:245-254
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    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/17508
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    References listed on IDEAS

    as
    1. Mark Taylor, 2011. "Measuring Financial Capability and its Determinants Using Survey Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 297-314, June.
    2. Michal Grinstein-Weiss & Shenyang Guo & Vanessa Reinertson & Blair Russell, 2015. "Financial Education and Savings Outcomes for Low-Income IDA Participants: Does Age Make a Difference?," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 156-185, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Capability; Knowledge; behavior; attitude; Addis Ababa; Ethiopia;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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