Financial exclusion and financial literacy

Evidence from Mexico

Authors

  • Maria José Roa Instituto de Investigaciones Económicas y Sociales Francisco de Vitoria https://orcid.org/0000-0002-4413-0590
  • Alejandra Villegas Universidad Iberoamericana

DOI:

https://doi.org/10.60758/laer.v31.103

Abstract

The present study seeks to contribute to the understanding of the underlying factors that could explain the high levels of financial exclusion that persist in Mexico, in particular the role of financial literacy. Our analysis is based on the 2018 National Survey of Financial Inclusion in Mexico (ENIF). To address the potential endogeneity between financial inclusion and financial literacy we use an instrumental variable probit model. The empirical analysis shows that the low levels of financial literacy, socioeconomic vulnerabilities, personality traits, and lack of trust in financial institutions prompt holding a formal financial product in Mexico.

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Published

2022-12-26

Issue

Section

Regular articles

How to Cite

Financial exclusion and financial literacy: Evidence from Mexico. (2022). Latin American Economic Review, 31, 1-23. https://doi.org/10.60758/laer.v31.103