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- Title
An Empirical Analysis of Some Factors Influencing Financial Literacy.
- Authors
Iacovoiu, Viorela Beatrice
- Abstract
The purpose of this paper is to emphasize the association between financial literacy and economic development, respectively the level of education, and the education spending. In this respect, we analysed financial literacy rates (FLR), as dependent variable, and Gross Domestic Product per capita in current US$ (GDP/capita), population by minimum completed level of education (PME) in % of the total population, and Education Spending (EDS) in US$ per student enrolled in secondary level, as independent variables. Using the Excel software, we created the scatter plots, highlighting the trendline, and calculated the coefficient of determination (R2) for the linear regression equation, and the correlation coefficient. The results showed that almost 50% of the variation in the financial literacy rate is explained by GDP/capita, whereas only around 33% is explained by EDS, and about 27% by PME. Therefore, we consider that the analyzed factors do not fully explain worldwide differences in financial literacy, which means that there are other factors that have a more significant influence upon financial literacy, as for example the national strategies focused on improving financial education.
- Subjects
FINANCIAL literacy; ECONOMIC development; GROSS domestic product; EDUCATIONAL finance; EDUCATIONAL attainment
- Publication
Economic Insights - Trends & Challenges, 2018, Vol 70, Issue 2, p23
- ISSN
2284-8576
- Publication type
Article