Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda
An experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial behaviour
Abstract
皇冠体育app authors organise a field experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial knowledge and behaviour. 皇冠体育app training increased financial literacy of participants, changed their savings and borrowing behaviour and had a positive effect on the new business start鈥恥p. However, it failed to have a significant (short鈥恡erm) impact on income. Using a two鈥恠tage regression framework, they identify enhanced financial literacy as one of the important factors explaining behavioural changes. 皇冠体育appy also test whether financial knowledge spillovers from trained farmers to their peers in local village banks but find no evidence for that.
This is an output from the 鈥楶olitics, Finance and Growth鈥� Project
Citation
Sayinzoga, A. , Bulte, E. H. and Lensink, R. (2016), Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda. Economic Journal, 126: 1571-1599.