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Do Women’s Financial Literacy Accelerate Financial Inclusion? Evidence from Pakistan

Author

Listed:
  • R. M. Ammar Zahid

    (Yunnan Technology and Business University)

  • Safia Rafique

    (Virtual University of Pakistan)

  • Muzammil Khurshid

    (University of the Punjab)

  • Wajid Khan

    (University of Baltistan)

  • Ikram Ullah

    (University of Malakand)

Abstract

Financial literacy is crucial to financial inclusion and facilitates access to and use of formal financial services and products. This study aims to investigate the role of financial literacy in improving financial inclusion among Pakistan’s women (a country characterized by a high gender gap and lower financial inclusion). A positivist philosophy was adopted and a survey design using a self-administered structured questionnaire was used to collect data from a sample of working women and university graduates. Initially, a pilot test was conducted on a sample of 80 respondents to confirm the reliability and validity of the questionnaire used. Final sample of 478 respondents was analyzed using inferential descriptive statistics and covariance-based structural equation modeling (CBSEM). The findings demonstrate that different aspects of financial literacy, i.e., savings management practice, debt management practice, investment management practice, and financial planning management practice, have a significant positive impact on financial inclusion among women. The findings are supported by theories of behavioral finance (i.e., self-efficacy and goal setting theory) and institutional theory. The study contributes to the existing literature on the relationship between financial literacy and financial inclusion and has implications for policymakers and practitioners in the financial sector in Pakistan.

Suggested Citation

  • R. M. Ammar Zahid & Safia Rafique & Muzammil Khurshid & Wajid Khan & Ikram Ullah, 2024. "Do Women’s Financial Literacy Accelerate Financial Inclusion? Evidence from Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4315-4337, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01272-2
    DOI: 10.1007/s13132-023-01272-2
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    References listed on IDEAS

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