1 research outputs found
Financial Literacy and Economic Growth: How Eastern Europe is Doing?
[Abstract]: In this study, we aim to analyse financial literacy
as a driver of financial wellbeing and economic growth in
three of the most recent EU Member States, namely
Romania, Bulgaria, and Croatia. Our particular interest
in studying more in-depth these three countries is generated by their difficult pathway in the transition to the Euro
and economic convergence on one side and by the limited
analysis carried out so far in relation to them on the other
side. Various studies indicate that financial literacy is
associated with wealth accumulation, and financial education can help achieve economic growth. To conduct the
empirical analysis, in this study, we have used primary
data provided by the OECD for our specific research purposes. The raw data were collected in a survey carried out
in 2019 in seven South Eastern European countries
reaching over 1,000 respondents for each country. We
used two-stage least-squares regression to test our hypothesis and cluster analysis for comparisons among countries.
Conclusions of our research reveal the main differences
between countries in terms of financial literacy and
reverse causality between financial literacy and economic growth for the analysed countries. Finally, the
study gives some insights into the future design of public
policies on financial education in these countries