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Aussi Sayinzoga, Erwin H. Bulte, Robert Lensink, Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda, The Economic Journal, Volume 126, Issue 594, 1 August 2016, Pages 1571–1599, https://doi.org/10.1111/ecoj.12217
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Abstract
We organise a field experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial knowledge and behaviour. The training increased financial literacy of participants, changed their savings and borrowing behaviour and had a positive effect on the new business start‐up. However, it failed to have a significant (short‐term) impact on income. Using a two‐stage regression framework, we identify enhanced financial literacy as one of the important factors explaining behavioural changes. We also test whether financial knowledge spillovers from trained farmers to their peers in local village banks but find no evidence for that.