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Financial Investments, Information Flows, and Caste Affiliation - Empirical Evidence from India

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  • Werner Boente

    ()
    (Schumpeter School of Business and Economics University of Wuppertal)

  • Ute Filipiak

    ()
    (Schumpeter School of Business and Economics University of Wuppertal)

Abstract

This paper empirically investigates the relevance of social interaction and caste affiliation for individual awareness of financial instruments and investment behavior in India. The results of our empirical analysis, which is based on a large scale survey on saving patterns of Indians, suggest a positive relationship between financial knowledge and social interaction. However, especially backward caste people living in regions with a large fraction of backward castes have a lower probability of being aware of various financial instruments. In contrast, we find only weak empirical evidence for a direct effect of caste affiliation and social interaction on investment behavior.

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Bibliographic Info

Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp11014.

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Length: 42
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:bwu:schdps:sdp11014

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Web page: http://elpub.bib.uni-wuppertal.de

Related research

Keywords: Financial Literacy; Social Interaction; Social Networks; Indian Caste System;

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Cited by:
  1. Ute Filipiak, 2013. "Trusting Financial Institutions: Out of Reach, out of Trust?," Schumpeter Discussion Papers sdp13002, Universitätsbibliothek Wuppertal, University Library.

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