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


  • Werner Boente

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

  • Ute Filipiak

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


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.

Suggested Citation

  • Werner Boente & Ute Filipiak, 2011. "Financial Investments, Information Flows, and Caste Affiliation - Empirical Evidence from India," Schumpeter Discussion Papers sdp11014, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:schdps:sdp11014

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    References listed on IDEAS

    1. Ashwini Deshpande, 2000. "Does Caste Still Define Disparity? A Look at Inequality in Kerala, India," American Economic Review, American Economic Association, vol. 90(2), pages 322-325, May.
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    Cited by:

    1. Eleonora Patacchini & Edoardo Rainone, 2017. "Social ties and the demand for financial services," Temi di discussione (Economic working papers) 1115, Bank of Italy, Economic Research and International Relations Area.
    2. repec:kap:jfsres:v:52:y:2017:i:1:d:10.1007_s10693-017-0279-0 is not listed on IDEAS
    3. Ute Filipiak & Yabibal M. Walle, 2015. "The Financial Literacy Gender Gap: A Question of Nature or Nurture?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 176, Courant Research Centre PEG.
    4. Ute Filipiak, 2013. "Trusting Financial Institutions: Out of Reach, out of Trust?," Schumpeter Discussion Papers sdp13002, Universitätsbibliothek Wuppertal, University Library.
    5. Rashmi Baura & Renuka Sane, 2014. "Repayment in microfinance: The Role of financial literacy and caste," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 14-06, Indian Statistical Institute, New Delhi, India.
    6. Philip Kostov & Thankom Arun & Samuel Annim, 2014. "Financial Services to the Unbanked: the case of the Mzansi intervention in South Africa," Contemporary Economics, University of Finance and Management in Warsaw, vol. 8(2), June.

    More about this item


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

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • Z1 - Other Special Topics - - Cultural Economics

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