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Understanding the Determinants of Aspirations in Rural Tanzania: Does Financial Literacy Matter?

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Relation http://oar.icrisat.org/12455/
https://link.springer.com/article/10.1057/s41287-023-00582-0
https://doi.org/10.1057/s41287-023-00582-0
 
Title Understanding the Determinants of Aspirations in Rural Tanzania: Does Financial Literacy Matter?
 
Creator Melesse, M B
Tirra, A N
Walle, Y W
Hauser, M
 
Subject Tanzania
Poverty
 
Description Aspirations have recently received increased attention in the analysis of poverty and its dynamics. The argument is that aspirations provide reference points for individuals’ forward-looking decisions and behaviours. Understanding of what determines aspirations is vitally important to design development interventions that can raise aspirations. In this paper, we analyse whether financial literacy is associated with individuals’ aspirations. Using data from more than 2000 Tanzanian households, we find a robust positive correlation between financial literacy and aspirations. Our results are robust to using alternative financial literacy measure, controlling for extensive covariates and non-cognitive traits, and sensitivity analyses to omitted variables. Overall, our findings suggest that aspirations could be influenced to improve poor individuals’ future investments and forward-looking behaviour.
 
Publisher Springer Link
 
Date 2023-05-02
 
Type Article
PeerReviewed
 
Format application/pdf
 
Language en
 
Rights cc_attribution
 
Identifier http://oar.icrisat.org/12455/1/The%20European%20Journal%20of%20Development%20Research_35_1294-1321_2023.pdf
Melesse, M B and Tirra, A N and Walle, Y W and Hauser, M (2023) Understanding the Determinants of Aspirations in Rural Tanzania: Does Financial Literacy Matter? The European Journal of Development Research, 35. pp. 1294-1321. ISSN 0957-8811