Determinants of financial resilience: Insights from an emerging economy

Hamid, Fazelina Sahul; Loke, Yiing Jia; Chin, Phaik Nie

Abstract

The Organisation for Economic Co-operation and Development Financial Literacy Survey of 2018 response is used to study the impact of financial knowledge, financial inclusion, and socio-demographic characteristics on financial resilience. The measurement of financial resilience considers elements related to keeping control of money, taking care of expenditures, having a financial cushion, handling financial shortfall or stress, and having financial planning. Using a sample of 3395 individuals across Malaysia, we find that greater financial knowledge is associated with the probability of being financially resilient. Greater financial inclusion in terms of having more bank accounts and holding more financial products is linked to the probability of being financially resilient. We also find that financial resilience varies across certain socio-demographic characteristics. Implications of the findings are discussed.

• Journal Article Type: Article
• Acceptance Date: Feb 1, 2023
• Online Publication Date: Mar 3, 2023
• Publication Date: Dec 31, 2023
• Deposit Date: Mar 6, 2023
• Publicly Available Date: Dec 8, 2023
• Journal: Journal of Social and Economic Development
• Print ISSN: 0972-5792
• Electronic ISSN: 2199-6873
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 25
• Issue: 2
• Pages: 479-499
• DOI: https://doi.org/10.1007/s40847-023-00239-y
• Keywords: Financial resilience; Financial inclusion; Financial literacy; Malaysia
• Public URL: https://uwe-repository.worktribe.com/output/10505413
• Publisher URL: https://link.springer.com/article/10.1007/s40847-023-00239-y