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Determinants of financial resilience: insights from an emerging economy

Author

Listed:
  • Fazelina Sahul Hamid

    (University of the West of England)

  • Yiing Jia Loke

    (Universiti Sains Malaysia)

  • Phaik Nie Chin

    (Universiti Sains Malaysia)

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.

Suggested Citation

  • Fazelina Sahul Hamid & Yiing Jia Loke & Phaik Nie Chin, 2023. "Determinants of financial resilience: insights from an emerging economy," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(2), pages 479-499, December.
    • Handle: RePEc:spr:jsecdv:v:25:y:2023:i:2:d:10.1007_s40847-023-00239-y
    DOI: 10.1007/s40847-023-00239-y
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    References listed on IDEAS

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    Cited by:

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    4. Vintilă Alexandra & Roman Mihai Daniel, 2024. "Resilience Analysis of the European Insurance Industry," Journal of Social and Economic Statistics, Sciendo, vol. 13(2), pages 58-81.

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