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Financial Inclusion in Rural Uganda: Testing Interaction Effect of Financial Literacy and Networks

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  • George Okello Candiya Bongomin
  • Joseph Mpeera Ntayi
  • John C. Munene
  • Isaac Nkote Nabeta

Abstract

Based on the premise that financial literacy take place in networks to influence the level of financial inclusion, the study examined whether networks moderate in the relationship between financial literacy and financial inclusion among poor households in rural Uganda. Studies have revealed that financial literacy affects the level of financial inclusion. However, these studies have failed to incorporate the moderating role of networks in the relationship between financial literacy and financial inclusion. The results showed that networks positively and significantly moderates in the relationship between financial literacy and financial inclusion with both financial literacy and networks having direct and significant effects.

Suggested Citation

  • George Okello Candiya Bongomin & Joseph Mpeera Ntayi & John C. Munene & Isaac Nkote Nabeta, 2016. "Financial Inclusion in Rural Uganda: Testing Interaction Effect of Financial Literacy and Networks," Journal of African Business, Taylor & Francis Journals, vol. 17(1), pages 106-128, January.
    • Handle: RePEc:taf:wjabxx:v:17:y:2016:i:1:p:106-128
    DOI: 10.1080/15228916.2016.1117382
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    References listed on IDEAS

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    5. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    6. Morshadul Hasan & Thuhid Noor & Jiechao Gao & Muhammad Usman & Mohammad Zoynul Abedin, 2023. "Rural Consumers’ Financial Literacy and Access to FinTech Services," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 780-804, June.
    7. Ali Raza & Guangji Tong & Vasilii Erokhin & Alexey Bobryshev & Lyubov Chaykovskaya & Natalya Malinovskaya, 2023. "Sustaining Performance of Wheat–Rice Farms in Pakistan: The Effects of Financial Literacy and Financial Inclusion," Sustainability, MDPI, vol. 15(9), pages 1-19, April.

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