THE IMPACTS OF ECONOMIC AND FINANCIAL INCLUSION ON THE FINANCIAL STABILITY AND INCLUSIVE GROWTH OF HOUSEHOLDS, BUSINESSES, AND COMMUNITIES IN DEVELOPING COUNTRIES

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 1008496
• Project Start Date: Oct 28, 2015
• Project End Date: Sep 30, 2020
• Program Code: [(N/A)]- (N/A)

Recipient Organization
UNIVERSITY OF ILLINOIS
2001 S. Lincoln Ave.
URBANA,IL 61801

Performing Department
Agricultural & Consumer Economics

Non Technical Summary
We plan to develop a comprehensive and weighted measure of global financial inclusion. We will then test the robustness of this measure and the impacts that financial inclusion have on the financial stability and inclusive growth of households, businesses, and communities in developing countries. Particular emphasis will be placed on the largest emerging economies - Brazil, China, and India.

Animal Health Component

45%

Research Effort Categories

Basic

45%

Applied

45%

Developmental

10%

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
606	6120	3010	50%
607	6010	3010	30%
608	6050	3010	20%

Knowledge Area
608 - Community Resource Planning and Development; 607 - Consumer Economics; 606 - International Trade and Development;

Subject Of Investigation
6120 - International economy and sectors thereof; 6010 - Individuals; 6050 - Communities, areas, and regions;

Field Of Science
3010 - Economics;

Keywords

financial inclusion

financial capability

consumer financial protection

financial services

financial stability

inclusive growth

deveoloping countries

emerging economies

microfinance

household finance

behavioral economics

economic development

Goals / Objectives
1. To construct a more comprehensive and rigorous measure of financial inclusion that can be adjusted at the macro and micro levels. 2. To use this measure to evaluate the impacts of financial inclusion on broad macroeconomic outcomes at the country level such as GDP growth and financial stability, making cross-country comparisons across developed and developing countries. 3. To then test the measure using micro-level data for households and small business enterprises and investigate its impacts on demand for formal and informal financial services. 4. To examine the impacts of financial inclusion on households' demand for microcredit and microinsurance in the formal and informal markets, especially for purposes related to agriculture, small business enterprises, and home ownership. 5. To examine the impacts on households' investment decisions, especially with regard to risk management, portfolio choice and the usage of new wealth management products (WMPs). 6. To examine the impacts on P2P borrowing and other forms of online credit for small and medium-sized enterprises. 7. To examine the impacts within the context of consumer financial protection and regulation. 8. Whenever possible and appropriate, to use our findings to make policy-based recommendations (founded in behavioral economic principles of choice architecture and nudges) so as to guide and assist government agencies, NGOs and foundations in building more practical, sustainable, and measurable models that improve the financial stability and inclusive growth of communities worldwide.

Project Methods
The methodology used for this project is based on recent work used to construct weighted, multidimensional measures of economic, human development, and financial inclusion. Our index will include traditional dimensions of access, quality, and usage, but then will also include additional dimensions related to previously mentioned factors. Each dimension in the index will include a set of indicators. Currently, two different methods are being investigated to construct and weight the different dimensions and indicators:(1) the two-stage Principal Component Analysis where weights are determined endogenouslyand (2) the modified exponential effective function with weights assigned using the variation coefficient method. Robustness tests will be conducted on the various dimensions of the index to investigate and compare the two methods. In particular, the results from a more traditional index that controls for just access, quality, and usage will be compared to ourmore comprehensive index that accounts for several other dimensions that affect supply and demand. Until recently, data did not exist to investigate the issues raised in this proposal. The following newly-released data sets will be used to empirically test our indices and investigate the impacts of financial inclusion on the financial stability and inclusive growth of households, businesses, and communities in developing countries. 1. World Bank's Global Findex database (includes multi-year macro data for 172 countries and micro-household level data for 144 countries; funded by the Bill & Melinda Gates Foundation); 2. China Household Finance Survey data (CHFS) (national longitudinal data on the finances of Chinese households, including detailed information on financial inclusion; administered by the Survey and Research Center for China Household Finance at Southwestern University of Finance and Economics in Chengdu, China); 3. China Micro and Small Enterprise Survey (CMES) (representative sample of approximately 12,000 small business and enterprises, including 2,000 online businesses; administered by the Survey and Research Center for China Household Finance at Southwestern University of Finance and Economics in Chengdu, China); 4. BFA Brazil Banking Correspondent Survey (nationally representative data on Brazilian households' financial inclusion with responses from 27 Brazilian states, including the Federal District of Brasilia; administered by BFA and funded by the Bill & Melinda Gates Foundation). To enhance the overall quality and usefulness of these data, the data sets are being merged with other international data sources such as the WB's World Development Indicators and country-specific data from sources such as the central banks and national bureaus of statistics. Note also that we are among the first researchers, and in some cases the only researchers, to have access to these data (for example, no other international researchers have access to the data from China). We also plan to use data from India, Mexico, Colombia, and Peru. We are currently working with CEMLA to collect micro-level financial inclusion data from Mexico, Colombia, and Peru. Similarly, we are working with our university partners and other collaborators in India who are collecting inclusive finance data at the community/village level. However, additional data may need to be collected using field-based experimental methods and other behavioral economic techniques. Applied econometric techniques will be used to conduct the actual analysis. We anticipate using probit and tobit analysis initially. Then, we will use more advanced quantile regression and panel data techniques. Quantile regression analysis will be particularly useful to investigating how the indices and other factors are affecting demand for formal and informal financial services differently across the distribution of households and businesses, especially those in the lower end of the distribution who have traditionally had more limited access toformal financial sector opportunities. The panel nature of the various data will be exploited to investigate how household and business demand for formal and informal financial services is evolving, especially for households by education, income, and wealth.

Progress 10/28/15 to 09/30/20

Outputs
Target Audience:The target audiences for this project included, but were not limited to: other researchers, academics, government agencies,NGOs, foundations, world organizations (e.g., UNHCR, Asian Development Bank, World Food Programme, UNICEF, WorldBank, T20 Japan), development banks, and private sector enterprises interested in national and global issues related tofinancial and digital inclusion, financial and digital literacy, and economic resilience. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Dr. Lyons offers lectures, technical assistance, and training to international executives from the public and private sectors related to her research in global financial inclusion and economic development. Currently, she is partnering on several research projects and faculty and student exchanges with universities and research institutes in China, Lebanon, Brazil, India, and Japan. Dr. Lyons has also been actively engaged in providing training and professional development on emerging global policies related to financial and digital inclusion. This has been in cooperation with the Asian Development Bank Institute and the Jindal Centre for the Global South. She also serves on the T20 under the G20 Presidencies for Japan, Saudi Arabia, and Italy. The T20 is comprised of leading global research institutes and high-level experts providing research-based policy recommendations to G20 Leaders to assist in addressing pressing global challenges that promote a more "sustainable, inclusive and resilient society." Below is a selected list of more technical lectures and trainings generated during the past year: "Financial inclusion in the digital age." 1st International E-Conference on Financing for Development, 2030 Global Agenda and Post Covid-19 Challenges, Indian Political Economy Associations (IPEA) and Institute for Global Dialogue (IGD) in South Africa, December 2020. "Challenges and opportunity for women entrepreneurs in the digital age." Women Empowerment, MSMEs and the Global South, Jindal Centre for the Global South, Jindal School of International Affairs (JSIA), O.P. Jindal Global University, October 2020. "A multidimensional approach to measuring the risk tolerance of Chinese households." The 4th Jiangnan Conference on China Studies, XIPU Institution at Xi'an Jiaotong Liverpool University, Suzhou, China, October 2020 (with F. Liu & E. Fang). "The digital future: Education, employment & wellness." T20 Saudi Arabia Summit Season Virtual Conference, Striving for Future Prosperity, Sustainability, and Inclusion, October 2020. "A human development approach to measuring and improving the digital livelihoods of vulnerable populations." Policy Recommendations for a Post-COVID-19 World, T20 Saudi Arabia TF6 The Economy, Employment, and Education in the Digital Age Breakout Session, June 2020 (with J. Kass-Hanna). "Rebuilding the livelihoods of forcibly displaced populations using digital financial inclusion." T20 Saudi Arabia Policy Recommendations for a Post-COVID-19 World, TF6 The Economy, Employment, and Education in the Digital Age Breakout Session, June 2020 (with J. Kass-Hanna). "Opportunities and challenges of digitalizing education in a post pandemic world." COVID-19 Disruption, Digital Transformation & Digital Divide: The Educational and Vocational Challenges and Opportunities, T20 Saudi Arabia Virtual Conference, May 2020. https://www.youtube.com/watch?v=IhJa88_ymG8&t=813s. "What can the G20 do to develop future skills, improve employability and encourage 'good work' in the post pandemic world?" The World Policy Forum, Global Solutions Initiative and CNBC, May 2020. https://www.global-solutions-initiative.org/global-table/the-future-of-work-in-the-post-pandemic-world/. "Policies to promote financial inclusion." 2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019. "The future of work and education in the digital age: Recommendations from the Japanese G20 and beyond." Center for East Asian & Pacific Studies, University of Illinois, September 2019. How have the results been disseminated to communities of interest?Research has been presented at leading international conferences, the Asian Development Bank Institute, UNHCR, T20 under Japan and Saudi Arabia G20 Presidencies, top research universities in China and India, and the financial industry both in the U.S. and globally. Currently, Dr. Lyons is partnering on several research projects and faculty and student exchanges with International Business School Suzhou, Xi'an Jiaotong-Liverpool University, Suzhou; Saint Joseph University of Beirut, Lebanon; Jindal Centre for the Global South, Jindal School of International Affairs (JSIA), O.P. Jindal Global University, India; as well as other universities and research institutes. In addition to those presentations already listed, below is an additional list of selected policy briefs, books, and presentations from this past year: "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa." 2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019. Lyons, A. C. andKass-Hanna, J. (2020). A human development approach to measuring and improving the digital livelihoods of vulnerable populations. T20 Saudi Arabia Policy Brief. Prepared for 2020 G20 Summit by T20 Saudi Arabia, Task Force 6: Economy, Employment, and Education in the Digital Age. https://t20saudiarabia.org.sa/en/briefs/Pages/Policy-Brief.aspx?pb=TF6_PB9. Lyons, A. C. andKass-Hanna, J. (2020). Rebuilding the livelihoods of forcibly displaced populations using digital financial inclusion. T20 Saudi Arabia Policy Brief. Prepared for 2020 G20 Summit by T20 Saudi Arabia, Task Force 6: Economy, Employment, and Education in the Digital Age. https://t20saudiarabia.org.sa/en/briefs/Pages/Policy-Brief.aspx?pb=TF6_PB7. Lyons, A. C. andKass-Hanna, J. (2020). A human development approach to measuring and improving the digital livelihoods of vulnerable populations. G20 Insights Policy Briefs. Policy Area: Economy, Employment and Education in the Digital Age. Berlin, Germany: Global Solutions Initiative. https://www.g20-insights.org/policy_briefs/a-human-development-approach-to-measuring-and-improving-the-digital-livelihoods-of-vulnerable-populations/. Lyons, A. C. andKass-Hanna, J. (2020). Rebuilding the livelihoods of forcibly displaced populations using digital financial inclusion. G20 Insights Policy Briefs. Policy Area: Economy, Employment and Education in the Digital Age. Berlin, Germany: Global Solutions Initiative. https://www.g20-insights.org/policy_briefs/rebuilding-the-livelihoods-of-forcibly-displaced-populations-using-digital-financial-inclusion/. Lyons, A. C., Zucchetti, A., Kass-Hanna, J. andCristóbal C. (2019). Bridging the gap between digital skills and employability for vulnerable populations. T20 Japan Policy Brief. Prepared for 2019 G20 Summit by T20 Japan, Task Force 7: The Future of Work and Education in the Digital Age. https://t20japan.org/policy-brief-bridging-gap-between-digital-skills-employability/. Lyons, A. C., Kass-Hanna, J., Zucchetti, A. andCristóbal C. (2019). Leaving no one behind: Measuring the multidimensionality of digital literacy in the age of AI and other transformative technologies. T20 Japan Policy Brief. Prepared for 2019 G20 Summit by T20 Japan, Task Force 7: The Future of Work and Education in the Digital Age. https://t20japan.org/policy-brief-multidimensionality-digital-literacy/. Lyons, A. C., Zucchetti, A., Kass-Hanna, J. andCristóbal C. (2019). Bridging the gap between digital skills and employability for vulnerable populations. G20 Insights Policy Briefs. Policy Area: Economy, Employment and Education in the Digital Age. Berlin, Germany: Global Solutions Initiative. https://www.g20-insights.org/policy_briefs/bridging-the-gap-between-digital-skills-and-employability-for-vulnerable-populations/. Lyons, A. C., Kass-Hanna, J., Zucchetti, A. andCristóbal C. (2019). Leaving no one behind: Measuring the multidimensionality of digital literacy in the age of AI and other transformative technologies. G20 Insights Policy Briefs. Policy Area: Economy, Employment and Education in the Digital Age. Berlin, Germany: Global Solutions Initiative. https://www.g20-insights.org/policy_briefs/leaving-no-one-behind-measuring-the-multidimensionality-of-digital-literacy-in-the-age-of-ai-and-other-transformative-technologies/. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Goals 1-8 were accomplished via the manuscripts, publications, presentations, and survey instruments listed in the progress/output section. The research produced from this project was presented in domestic and international venues to numerous stakeholders worldwide. Here is a summary of three of the key research papers generated: Title: Impact of Fintech Development on Savings, Borrowing and Remittances: A Comparative Study of Emerging Economies. Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut, Ana Fava, Federal University of ABC (UFABC). Fintech is rapidly changing the landscape for financial services in terms of accessibility and affordability, especially in this post-COVID era. Digital finance now has the potential to be a game changer for the nearly two billion financially excluded persons in the developing and emerging world. Non-bank providers such as mobile money services have expanded and are leapfrogging ahead of conventional banking services. This study investigates the linkages between fintech development and demand for financial services using data from the world's first global ranking of fintech ecosystems - the Global Fintech Index (GFI). The GFI is an industry tool which scores 65 countries based on the size of their fintech ecosystem, the performance, and the business environment. We use a min-max method and geometric mean approach to normalize and weight the GFI Score to assess the effects of fintech development on demand for savings, borrowing, and remittances for 16 of the world's largest emerging economies. Our results show that the development of fintech ecosystems plays a key role in improving financial inclusion in emerging economies, but considerable heterogeneities still exist across populations in terms of gender, age, education, and socioeconomic status. Regional heterogeneities are also observed, especially when comparing Latin American and Asian economies to other regions of the world. While more developed fintech ecosystems appear to translate to greater accessibility of financial services, additional evidence suggests that access may not directly translate to greater usage of those services. The findings have important implications for key public and private-sector stakeholders in the emerging world, considering the groundbreaking role that fintech and other digital technologies can play in the development of new models for financial inclusion, especially for populations most vulnerable to digital transformations. Title: Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa. Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut, Fan Liu, Xi'an Jiaotong Liverpool University, Andrew J. Greenlee, University of Illinois at Urbana-Champaign, Lianyun Zeng, Renmin University of China. Globally, 1.7 billion adults still lack access to formal financial services, with a large percentage living in South Asia and Sub-Saharan Africa. Current financial inclusion strategies seek to enhance these vulnerable populations' access to financial services with the aim of building more inclusive and financially resilient societies. With the Fintech movement and over 67% of the world's population having a mobile phone, digital financial literacy is gaining momentum. Nevertheless, negligible research has measured its impacts on financial behavior. This study uses data from the InterMedia Financial Inclusion Insights (FII) surveys for seven south asian and sub-saharan African countries to investigate the impact of multi-dimensional measures of financial and digital literacy on resilience-building financial behaviors, including saving, borrowing, and risk management. The findings consistently show that both financial and digital literacy are key factors to building inclusiveness and financial resilience. Heterogeneities are identified across regions, as well as for poor, rural, and female households. A robustness check is also included to address potential endogeneity. The results emphasize the need to redefine traditional financial literacy to include digital literacy, with important implications for countries considering both as a dual approach to improving households' long-run financial resilience. Title: Impacts of Financial and Digital Inclusion on Poverty in South Asia and Sub-Saharan Africa. Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut, Andrew J. Greenlee, University of Illinois at Urbana-Champaign. The United Nations 2030 Agenda for Sustainable Development Goals calls for the elimination of many global challenges related to poverty. The first Sustainable Development Goal - the elimination of poverty - targets the challenges faced by the more than 700 million people who live on less than $1.90 per day. This study uses data from the 2017 InterMedia Financial Inclusion Insights surveys to examine the relationship between poverty and financial and digital inclusion across seven developing countries in South Asia and Sub-Saharan Africa. We find that increases in various measures of financial and digital inclusion are associated with significant reductions in poverty, including food insecurity. While the results are robust across the measures, some spatial heterogeneities are found for rural and urban populations. The most significant and consistent reductions in poverty are related to ownership and usage of traditional bank accounts. Access to and usage of non-bank financial institutions and mobile money accounts also significantly matters. Robustness checks for endogeneity and selection are conducted. The results provide strong evidence for the continued expansion of both traditional and non-traditional financial services and underscore the importance of digital financial services to support and sustain poverty reduction in developing countries.

Publications

• Type: Journal Articles Status: Published Year Published: 2019 Citation: Lyons, A.C. and Kass-Hanna, J. 2019. Financial inclusion, financial literacy, and economically vulnerable populations in the Middle East and North Africa. Emerging Markets Finance and Trade. DOI: 10.1080/1540496X.2019.159837.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Grable, J.E., Lyons, A.C. and Heo, W. 2019. A test of traditional and psychometric relative risk tolerance measures on household financial risk taking. Finance Research Letters, 30, 8-13. https://doi.org/10.1016/j.frl.2019.03.012.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Yin, Z., Peng, C. and Lyons, A. 2019. The development and influence of Chinese family inclusive finance. Management World, 2, 74-87. DOI: 10.19744/j.cnki.11-1235/f.2019.0021 (In Chinese).
• Type: Other Status: Accepted Year Published: 2020 Citation: Lyons, A.C., Kass-Hanna, J. and Greenlee, A. 2020. Impacts of financial and digital inclusion on poverty in South Asia and Sub-Saharan Africa. ADBI Working Paper Series. Tokyo, Japan: Asian Development Bank Institute. (Forthcoming).
• Type: Other Status: Published Year Published: 2020 Citation: Lyons, A.C., Kass-Hanna, J., Liu, F., Greenlee, A. and Zeng, L. 2020. Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa. ADBI Working Paper Series No. 1098. Tokyo, Japan: Asian Development Bank Institute.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Lyons, A. 2019. Building Financial Resilience through Financial and Digital Literacy in South Asia and Sub-Saharan Africa. 2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2019 Citation: Lyons, A. 2019. Policies to Promote Financial Inclusion. 2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. What can the G20 do to develop future skills, improve employability and encourage good work in the post pandemic world? The World Policy Forum, Global Solutions Initiative and CNBC, May 2020.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. Opportunities and challenges of digitalizing education in a post pandemic world. COVID-19 Disruption, Digital Transformation & Digital Divide: The Educational and Vocational Challenges and Opportunities, T20 Saudi Arabia Virtual Conference, May 2020.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. Rebuilding the livelihoods of forcibly displaced populations using digital financial inclusion. T20 Saudi Arabia Policy Recommendations for a Post-COVID-19 World, TF6 The Economy, Employment, and Education in the Digital Age Breakout Session, June 2020 (with J. Kass-Hanna).
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. A human development approach to measuring and improving the digital livelihoods of vulnerable populations. Policy Recommendations for a Post-COVID-19 World, T20 Saudi Arabia TF6 The Economy, Employment, and Education in the Digital Age Breakout Session, June 2020 (with J. Kass-Hanna).
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. Poverty, financial and digital inclusion in South Asia and Sub-Saharan Africa. Jindal Centre for the Global South, Jindal School of International Affairs (JSIA), O.P. Jindal Global University, September 2020.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. The digital future: Education, employment & wellness. T20 Saudi Arabia Summit Season Virtual Conference, Striving for Future Prosperity, Sustainability, and Inclusion, October 2020.
• Type: Journal Articles Status: Accepted Year Published: 2021 Citation: Lyons, A.C., Kass-Hanna, J. and Montoya, A.C. 2021. A multidimensional approach to measuring vulnerability to poverty of Syrian refugees in Lebanon. Economic Research Forums Working Paper Series. Cairo, Egypt: Economic Research Forum. (Forthcoming).
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2020 Citation: Lyons, A. 2019. Challenges and opportunity for women entrepreneurs in the digital age. Women Empowerment, MSMEs and the Global South, Jindal Centre for the Global South, Jindal School of International Affairs (JSIA), O.P. Jindal Global University, October 2020.
• Type: Journal Articles Status: Under Review Year Published: 2020 Citation: Lyons, A.C., Kass-Hanna, J. and Fava, A. 2020. Impact of Fintech Development on Savings, Borrowing and Remittances: A Comparative Study of Emerging Economies. Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3689142.

Progress 10/01/18 to 09/30/19

Outputs
Target Audience:The target audiences for this project included, but were not limited to,other researchers, academics, government agencies, NGOs, foundations, world organizations (e.g., UNHCR, Asian Development Bank, World Food Programme, UNICEF, World Bank, T20 Japan), development banks, and private sector enterprises interested in national and global issues related to financial and digital inclusion, financial and digital literacy, and economic resilience. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Dr. Lyons has been working with the China Executive Leadership Program (CELP) at the University of Illinois at Urbana-Champaign. Through CELP, Dr. Lyons offers lectures and training sessions to international executives from the financial industry in China related to her research in global financial inclusion. Currently, she is partnering on several research projects and faculty and student exchanges with universities and research institutes in China, Lebanon, Brazil, and Japan. Dr. Lyons has also been actively engaged in providing training and professional development on emerging global policies related to financial and digital inclusion. This has been in cooperation with the Asian Development Bank Institute. She also serves on the T20 under the Japanese Presidency. The T20 is comprised of leading global research institutes and high-level experts providing research-based policy recommendations to G20 Leaders to assist in addressing pressing global challenges that promote a more "sustainable, inclusive and resilient society." Below is a selected list of lectures and trainings from this past year: "Policies to promote financial inclusion."2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019. "The future of work and education in the digital age: Recommendations from the Japanese G20 and beyond." Center for East Asian & Pacific Studies, University of Illinois, September 2019. "A digital skills strategy for bridging the education-workforce divide in the 21st century." The T20 Japan Summit, Tokyo, Japan, May 2019. "Behavioral economics and opportunities for the financial services industry in China." Sinosure (CECIC). Global Education and TrainingProgram & China Executive Leadership Program, University of Illinois, Champaign, IL, May 2019. "Behavioral economics and digital finance." Agricultural Bank of China (ABC), Global Education and TrainingProgram & China Executive Leadership Program, University of Illinois, Champaign, IL, November 2018. (ThreeLectures). "Behavioral economics and digital finance." Zhejiang Rural Credit Cooperative (ZJRC), Global Education and TrainingProgram & China Executive Leadership Program, University of Illinois, Champaign, IL, November 2018. (Two Lectures). "Digital finance and data science: Implications for rural development and poverty alleviation in China." Agricultural Development Bank of China (ADBC), Global Education and TrainingProgram & China Executive Leadership Program, University of Illinois, Champaign, IL, September 2018. (Lecture) How have the results been disseminated to communities of interest?Research has been presented at leading international conferences, the Asian Development Bank Institute, UNHCR, T20 Summit, top research universities in China, and the financial industry both in the U.S. and globally. Currently, Dr. Lyons is partnering on several research projects and faculty and student exchanges with Southwestern University of Economics and Finance in Chengdu; China and the Chinese Academcy of Financial Inclusion (CAFI) at Renmin University in Beijing, China; International Business School Suzhou, Xi'an Jiaotong-Liverpool University, Suzhou; Saint Joseph University of Beirut, Lebanon; as well as other universities and research institutes. In addition to those presentations already listed, below is an additional list of selected presentations from this past year: "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa." 2019 Asian Development Bank Institute Annual Conference: Financial Inclusion, Financial Literacy, and Fintech, Tokyo, Japan, November 2019. "Impacts of financial and digital inclusion on poverty in developing economies in South Asia and Sub-Saharan Africa." 7th Seminar on Asia and Pacific Economies, Xi'an Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2019. What do you plan to do during the next reporting period to accomplish the goals?Dr. Lyons plans to publish existing manuscripts in academic research journals. Several new manuscripts are underway. She will present new and existing work at leading research meetings in the U.S. and abroad as opportunities arise. She is also scheduled to give two talks on campus in the Spring 2020 to CSAMES and CEAPS. Below is a listing of some of those projects currently underway: Lyons, A.C., Kass-Hanna, J., Chatterjee, S. andXu, N. 2019. Psychometrics and financial security across aging cohorts in Asian and non-Asian countries. Soon to be submitted. Lyons, A.C. andZeng, L. 2019. Heterogeneous impacts of financial and digital literacy on consumption expenditures of households in China. Soon to be submitted. Liu, F., Lyons, A.C. andFang, E. 2020. A pilot investigation of traditional and psychometric determinants of risk tolerance and investment decisions of households in China. Lyons, A.C., Fontes, A. andZhu, M. 2020. The impacts of digital literacy and e-inclusion on the financial well-being of U.S. households. NORC at the University of Chicago, The Behavioral and Economic Analysis Decision-Making (BEAD) Team. Lyons, A.C.and Kass-Hanna, J. 2020. "Enhancing the livelihood and economic security of Syrian refugees in Lebanon." Lyons, A.C., Greenlee, A.and Kass-Hanna, J. 2020. "Financial inclusion and the economic resilience of Syrian refugees: Evidence from Lebanon."

Impacts
What was accomplished under these goals? Goals One through Eight were accomplished via the manuscripts, publications, presentations, and survey instruments listed in the progress/output section. The research produced from this project was presented in domestic and international venues to numerous stakeholders worldwide. Here is a summary of three of the key research papers generated: Title: Impacts of Financial and Digital Inclusion on Poverty in South Asia and Sub-Saharan Africa Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut Using microdata from the 2014 Global Findex, along with macroeconomic indicators, we investigate financial inclusion for the MENA region. We find that economically vulnerable populations are significantly less likely to be financially included. Households living in MENA countries with higher levels of financial literacy are more likely to be engaged in positive savings behaviors and less likely to be borrowing, especially from informal sources. Financial literacy and other macro characteristics, however, do not relate to all individuals equally, especially for those most vulnerable. The findings have important implications for policies in the MENA region, where prolonged conflicts make financial inclusion an even more urgent, yet challenging, goal. Title: Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut, Fan Liu, Xi'an Jiaotong Liverpool University, Andrew J. Greenlee, University of Illinois at Urbana-Champaign, Lianyun Zeng, Renmin University of China Globally, 1.7 billion adults still lack access to formal financial services. Most of these financially excluded individuals (over 75% of the adult population) are living in South Asia and Sub-Saharan Africa. Those populations most vulnerable include the poor, those living in rural areas, and women. Currently, financial inclusion strategies go beyond providing access to bank accounts and include a more complex array of financial services that aim to build more inclusive and financially resilient societies. With the movement towards fintech and over 80% of the world's population having a mobile phone, digital financial literacy is gaining momentum. Yet, little research has attempted to rigorously measure the impacts of digital literacy on financial behavior, especially compared to and in conjunction with financial literacy. This study uses data from the InterMedia Financial Inclusion Insights (FII) surveys from seven South Asian and Sub-Saharan African countries to investigate the impact of multi-dimensional measures of financial and digital literacy on resilience-building financial behaviors - including savings, borrowing, risk management and insurance. Robustness checks are conducted for economically vulnerable populations to identify heterogeneities and inequality gaps. Two-stage models using instrumental variables are also included to check for endogeneity. The findings show that both financial and digital literacy are key factors to building inclusiveness and financial resilience. The results are consistent and significant across all models. The findings emphasize the need to redefine traditional financial literacy to include digital literacy and have important implications for countries considering both financial and digital literacy as a dual approach to improving households' long-run financial resilience. Title: Impacts of Financial and Digital Inclusion on Poverty in South Asia and Sub-Saharan Africa Authors: Angela C. Lyons, University of Illinois at Urbana-Champaign, Josephine Kass-Hanna, Saint Joseph University of Beirut, Andrew J. Greenlee, University of Illinois at Urbana-Champaign The United Nations 2030 Agenda for Sustainable Development Goals calls for the elimination of many global challenges related to poverty. The first Sustainable Development Goal - the elimination of poverty - specifically targets the challenges faced by the more than 700 million people who live on less than $1.90 per day. This study used data from the 2017 InterMedia Financial Inclusion Insights surveys to examine the relationship between poverty and financial and digital inclusion across seven developing countries in South Asia (Bangladesh, India, and Pakistan) and Sub-Saharan Africa (Kenya, Nigeria, Tanzania, and Uganda). Using these data, we tested the association between poverty and financial and digital inclusion across several dimensions and found that increases in various types of inclusion were associated with significant reductions in poverty. While the results tended to be robust across the measures, some differences in spatial heterogeneity were found across rural and urban populations. The most significant and consistent reductions in poverty were related to ownership and usage of traditional bank accounts; having access to and usage of non-bank financial institutions and mobile money accounts also significantly mattered. Robustness checks for endogeneity and selection were also conducted. The results provide strong evidence for the continued expansion of both traditional and non-traditional financial services, and also underscore the importance of digital financial services to support and sustain poverty reduction in developing countries.

Publications

• Type: Journal Articles Status: Published Year Published: 2019 Citation: Lyons, A.C. and Kass-Hanna, J. 2019. Financial inclusion, financial literacy, and economically vulnerable populations in the Middle East and North Africa. Emerging Markets Finance and Trade. DOI: 10.1080/1540496X.2019.159837.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Grable, J.E., Lyons, A.C. and Heo, W. 2019. A test of traditional and psychometric relative risk tolerance measures on household financial risk taking. Finance Research Letters, 30, 8-13. https://doi.org/10.1016/j.frl.2019.03.012.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Yin, Z., Peng, C. and Lyons, A. 2019. The development and influence of Chinese family inclusive finance. Management World, 2, 74-87. DOI: 10.19744/j.cnki.11-1235/f.2019.0021 [In Chinese].
• Type: Journal Articles Status: Accepted Year Published: 2019 Citation: Lyons, A.C., Kass-Hanna, J. and Greenlee, A. 2019. Impacts of financial and digital inclusion on poverty in South Asia and Sub-Saharan Africa. ADBI Working Paper Series. Tokyo, Japan: Asian Development Bank Institute.
• Type: Journal Articles Status: Accepted Year Published: 2019 Citation: Lyons, A.C., Kass-Hanna, J., Liu, F., Greenlee, A. and Zeng, L. 2019. Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa. ADBI Working Paper Series. Tokyo, Japan: Asian Development Bank Institute.
• Type: Journal Articles Status: Published Year Published: 2019 Citation: Lyons, A.C., Grable, J.E. and Zeng, T. 2019. Impacts of financial literacy on loan demand of financially excluded households in China. ADBI Working Paper Series No. 923. Tokyo, Japan: Asian Development Bank Institute.
• Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Lyons, A.C. 2019. Impacts of financial and digital inclusion on poverty in developing economies in South Asia and Sub-Saharan Africa. 7th Seminar on Asia and Pacific Economies, Xian Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:The target audiences for this project included, but were not limited to: other researchers, academics, government agencies, NGOs, foundations, world organizations (e.g., United Nations, OECD, World Bank, T20 Japan), central banks, development banks, rural credit cooperatives, microfinance institutions, and private sector enterprises interested in efforts related to national and global issues related to economic and financial inclusion. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Dr. Lyons has been working with the China Executive Leadership Program (CELP) at the University of Illinois at Urbana-Champaign. Through CELP, Dr. Lyons offers lectures and training sessions to international executives from the financial industry in China related to her research in global financial inclusion. Currently, she is partnering on several research projects and faculty and student exchanges with universities and research institutes in China, Lebanon, India, Brazil, Bangladesh, and Japan. Below is a selected list of lectures and trainings from this past year: "Digital finance and data science: Implications for rural development and poverty alleviation in China." Agricultural Development Bank of China (ADBC), Global Education and Training Program & China Executive Leadership Program, University of Illinois, Champaign, IL, September 2018. "Alternative data and risk scoring models for thin-file clients." Synchrony Financial, University of Illinois Research Park, Champaign, IL, June 2018. "Behavioral economics and opportunities for the financial services industry in China." China Export & Credit Insurance Corporation (Sinosure), Global Education and Training Program & China Executive Leadership Program, University of Illinois, Champaign, IL, June 2018. "Behavioral Economics and Applications for Banking and Financial Digital Services." The Industrial Commercial Bank of China (ICBC), Global Education and Training Program & China Executive Leadership Program, University of Illinois, Champaign, IL, April-May 2018. "Behavioral Economics: Innovations in Banking and Finance." Zhejiang Rural Credit Cooperative (ZJRC), University of Illinois China Executive Leadership Program, Champaign, IL, November 2017. "Challenges and Opportunities for Digital Finance in China." Zhejiang Rural Credit Cooperative (ZJRC), University of Illinois China Executive Leadership Program, Champaign, IL, November 2017. "Improving Financial Services in China: Challenges and Opportunities." Shanghai Pudong Development Bank, University of Illinois China Executive Leadership Program, Champaign, IL, September 2017. "The Future of Financial Literacy Research: New and Innovative Opportunities from Around the World." The Chinese Academy of Financial Inclusion (CAFI), Renmin University, Beijing, China, July 2017. "Financial Services in Rural China: Opportunities and Challenges." Shanghai Rural Commercial Bank (SRCB), University of Illinois China Executive Leadership Program, Champaign, IL, May 2017. How have the results been disseminated to communities of interest?Research has been presented at leading international conferences, the Asian Development Bank Institute, top research universities in China, and the financial industry both in the U.S. and globally. Currently, Dr. Lyons is partnering on several research projects and faculty and student exchanges with Southwestern University of Economics and Finance in Chengdu, China and the Chinese Academcy of Financial Inclusion (CAFI) at Renmin University in Beijing, China as well as other universities and research institutes in Lebanon, India, Brazil, Bangladesh, and Japan. In addition to those presentations already listed, below is an additional list of selected presentations from this past year: "Risk Preference and Household Asset Allocation along the Wealth Distribution: Facts from the China Household Finance Survey" (with Zeng Ting & Junda Lv). Chinese Economists Society Annual China Conference, Hefei, China, June 2018. "Do Small Business Owners Use their Personal Credit Card to Finance their Businesses? Evidence from China" (with Nana Xu & Zhao Rong). Chinese Economists Society Annual China Conference, Hefei, China, June 2018. "The impact of financial literacy on the innovation and performance of MSEs in People's Republic of China" (with Quanyun Song & Yu Wu). Chinese Economists Society Annual China Conference, Hefei, China, June 2018. "Quantile Regression Analysis of the Impacts of Financial Literacy and Digital Finance Across the Wealth Distribution in China." The 12th Biennial Conference of Asian Consumer and Family Economics Association, Fuzhou, China, July 2018; 6th Seminar on Asia and Pacific Economies, Xi'an Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2018. "Impacts of Financial Literacy on Loan Demand of Financially Excluded Households in China." 6th Seminar on Asia and Pacific Economies, Xi'an Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2018; The Chinese Economists Society (CES), University of Georgia, Athens, GA, April 2018; The Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China, December 2017. "Infrastructure, Urbanization, and Financial Inclusion of Chinese Households." The 12th Biennial Conference of Asian Consumer and Family Economics Association, Fuzhou, China, July 2018; The Chinese Economists Society (CES), University of Georgia, Athens, GA, April 2018; The Chinese Academy of Financial Inclusion (CAFI), Renmin University, Beijing, China, July 2017; Chinese Economists Society Annual Conference in China, Nanjing, China, June 2017; 5th Seminar on Asia and Pacific Economies, Xi'an Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2017. What do you plan to do during the next reporting period to accomplish the goals?Dr. Lyons plans to publish existing manuscripts in academic research journals. Several new manuscripts are underway. She will present new and existing work at leading research meetings in the U.S. and abroad as opportunities arise. Also, faculty and graduate student exchanges will continue in 2019.

Impacts
What was accomplished under these goals? Goals 1, 2, 3, 4, 5, 6, 7, and 8 were accomplished via the manuscripts, publications, presentations, and survey instruments listed in the progress/output section. The research produced from this project was presented in numerous domestic and international venues to numerous stakeholders worldwide. Here is a summary of some of the key research papers generated: TITLE: Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in China AUTHORS: Angela C. Lyons, University of Illinois at Urbana-Champaign; John E. Grable, University of Georgia; Ting Zeng, Southwestern University of Economics and Finance Government leaders around the world are designing national strategies to improve financial inclusion for populations traditionally excluded from the financial markets. Financial literacy is a key tool being used to bring economically vulnerable populations into the financial mainstream. Data from the 2013 China Household Finance Survey (CHFS) were used to investigate the impacts of various dimensions of financial literacy on the usage of bank and non-bank loans among rural, illiterate, and migrant populations in China. The findings show that the most vulnerable groups may be less likely to benefit from financial literacy, especially when it comes to usage of formal bank loans. Other factors such as those related to social networks and infrastructure may matter more than financial literacy. Results were found to vary across measures of financial literacy and financial inclusion. The findings suggest that barriers to access likely need to be overcome so that financial literacy can be more effective. The current study provides important insights for policy makers and international organizations designing national strategies to improve financial inclusion via financial literacy, especially for populations that have been traditionally excluded. Researchers are encouraged to re-examine previous definitions and measures of financial literacy and inclusion to develop a better understanding of the relationship between the two dimensions. TITLE: Financial Inclusion, Financial Literacy and Economically Vulnerable Populations in the Middle East and North Africa AUTHORS: Angela C. Lyons, University of Illinois at Urbana-Champaign and Josephine Kass-Hanna, Saint Joseph University of Beirut Many large disparities in financial inclusion still exist around the world, especially in the Middle East and North Africa (MENA) region. The purpose of this paper is two-fold. First, we use data from the 2014 World Bank Global Findex and supplement it with indicators of financial literacy and other macroeconomic characteristics to investigate the factors shaping financial inclusion in the MENA region. Second, we examine how the impact of these factors differs for those groups traditionally excluded - women, youth, the less educated, the poor, and refugees. The findings show that economically vulnerable populations are significantly less likely to be financially included both in terms of savings and borrowing. Households living in MENA countries with higher levels of financial literacy are more likely to be engaged in positive savings behaviors and less likely to be borrowing, especially from informal sources. Financial literacy, however, does not relate to all individuals in the MENA region equally, especially among those populations most vulnerable. Other macro characteristics associated with a country's financial and technological infrastructure, economic development, political stability and legal rights also matter, but perhaps not as much as a country's level of financial literacy. The findings have important implications for policies aimed at improving access to financial services in the MENA region, especially via financial literacy. Initiatives such as these are particularly important for a region suffering from political, economic, and social conflict that makes financial inclusion an even more urgent, yet challenging, goal. TITLE: A Cross-Country Analysis of Population Aging and Financial Security AUTHORS: Angela C. Lyons, University of Illinois at Urbana-Champaign; John E. Grable, University of Georgia; So-Hyun Joo, Ewha Womans University Throughout the world, policy makers are concerned about the impact that population aging will have on households' financial security, especially those groups most likely to be vulnerable--women, the less educated, and the poor. We use data from the 2014 World Bank Global Findex and supplement it with macroeconomic indicators of old-age security to investigate the financial security of households across both developed (OECD) and developing (non-OECD) countries with various aging populations. Five fundamental indicators of financial security are examined. Results show an aging effect for all measures. The aging effects are largest for those who report saving for old age. Older age groups living in countries with larger aging populations are more likely to save, regardless of OECD status. Also, those who are female, have less education, and lower incomes are particularly vulnerable, especially those living in developing countries. Further, the financial security of those living in non-OECD countries is significantly more likely to be affected by public pension spending and other key indicators of old-age security. Financial inclusion and technological usage also have a significant and positive impact on financial security. These factors could play a key role in promoting savings and improving financial security in aging populations worldwide. The findings from this study have important policy implications given the pressures that some countries' social support and public transfer systems will face in the coming years. TITLE: Infrastructure, Urbanization, and Loan Demand of Urban and Rural Households in China? AUTHORS: Angela C. Lyons, University of Illinois at Urbana-Champaign; John E. Grable, University of Georgia; Ting Zeng, Southwestern University of Finance and Economics Financial inclusion plays an important role in giving households greater access to borrowing opportunities, which in turn can be used to improve human capital accumulation, socioeconomic status, and long-run economic development. One way to enhance households' access to and usage of the financial system, especially the formal banking system, is to ensure that adequate infrastructure exists within their community. This study uses data from the 2013 China Household Finance Survey to investigate how infrastructure affects the usage of both bank and non-bank loans for urban and rural households in China. The results suggest that infrastructure, in a variety of forms (e.g., physical, financial, technological, social, and informational), is significantly associated with loan demand--most notably for urban households using formal bank loans. Further, those living in more urbanized areas and megacities are less likely to demand bank and non-bank loans even after controlling for other factors, suggesting that there may be an "urbanization effect" that is dampening credit access and usage. The potential for reverse causality between infrastructure and loan demand is also taken into consideration. The results show that decisions related to loan demand and infrastructure mostly appear to be made independently. The findings from this research have important implications for China and other countries working on national strategies aimed at improving financial inclusion, especially the expansion of bank credit in rapidly growing urbanized areas, where infrastructure may be reaching capacity.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2108 Citation: Lyons, A.C., Grable, J. and Joo, S.H. 2018. A Cross-Country Analysis of Population Aging and Financial Security. The 12th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Fuzhou, China.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: "Risk Preference and Household Asset Allocation along the Wealth Distribution: Facts from the China Household Finance Survey" (with Zeng Ting and Junda Lv). Chinese Economists Society Annual China Conference, Hefei, China, June 2018.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: "Do Small Business Owners Use their Personal Credit Card to Finance their Businesses? Evidence from China" (with Nana Xu and Zhao Rong). Chinese Economists Society Annual China Conference, Hefei, China, June 2018.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: "The Impact of Financial Literacy on the Innovation and Performance of MSEs in Peoples Republic of China" (with Quanyun Song and Yu Wu). Chinese Economists Society Annual China Conference, Hefei, China, June 2018.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: Quantile Regression Analysis of the Impacts of Financial Literacy and Digital Finance Across the Wealth Distribution in China. The 12th Biennial Conference of Asian Consumer and Family Economics Association, Fuzhou, China, July 2018; 6th Seminar on Asia and Pacific Economies, Xian Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2018.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: Impacts of Financial Literacy on Loan Demand of Financially Excluded Households in China. 6th Seminar on Asia and Pacific Economies, Xian Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2018; The Chinese Economists Society (CES), University of Georgia, Athens, GA, April 2018; The Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China, December 2017.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: Infrastructure, Urbanization, and Financial Inclusion of Chinese Households. The 12th Biennial Conference of Asian Consumer and Family Economics Association, Fuzhou, China, July 2018; The Chinese Economists Society (CES), University of Georgia, Athens, GA, April 2018; The Chinese Academy of Financial Inclusion (CAFI), Renmin University, Beijing, China, July 2017; Chinese Economists Society Annual Conference in China, Nanjing, China, June 2017; 5th Seminar on Asia and Pacific Economies, Xian Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China, May 2017.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: A Cross-Country Analysis of Population Aging and Financial Security. American Council on Consumer Interests 2018 Annual Conference, Clearwater Beach, FL, May 2018 (with J. E. Grable and S. H. Joo).
• Type: Other Status: Awaiting Publication Year Published: 2018 Citation: Lyons, A.C., Grable, J.E. and Zeng, T. 2019. Impacts of Financial Literacy on Loan Demand of Financially Excluded Households in China. ADBI Working Paper Series. Tokyo, Japan: Asian Development Bank Institute.
• Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Lyons, A.C., Grable, J.E. and Zeng, T. 2018. Impacts of Financial Literacy on Loan Demand of Financially Excluded Households in China. (Revise and Resubmit).
• Type: Other Status: Awaiting Publication Year Published: 2019 Citation: Lyons, A.C., Song, Q. and Yu, W. 2019. Quantile Regression Analysis of the Impacts of Financial Literacy and Digital Finance Across the Wealth Distribution in China. ADBI Working Paper Series. Tokyo, Japan: Asian Development Bank Institute.
• Type: Journal Articles Status: Under Review Year Published: 2018 Citation: Lyons, A.C. and Kass-Hanna, J. 2018. Financial Inclusion, Financial Literacy, and Economically Vulnerable Populations in the Middle East and North Africa. SSRN Working Paper Series. Available at SSRN: https://ssrn.com/abstract=3189563 (Revise and Resubmit).
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2018 Citation: Infrastructure, Urbanization, and Financial Inclusion of Chinese Households. American Council on Consumer Interests 2018 Annual Conference, Clearwater Beach, FL, May 2018 (with J.E. Grable and T. Zeng).
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Lyons, A.C., Grable, J.E. and Joo, S.H. 2018. A Cross-Country Analysis of Population Aging and Financial Security. The Journal of the Economics of Ageing, 12, 96-117. https://doi.org/10.1016/j.jeoa.2018.03.001.
• Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Lyons, A.C., Song, Q. and Wu, Y. 2018. Quantile Regression Analysis of the Impacts of Financial Literacy and Digital Finance Across the Wealth Distribution in China. The 12th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Fuzhou, China.
• Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Lyons, A.C., Grable, J. and Zeng, T. 2018. Infrastructure, Urbanization, and Financial Inclusion of Chinese Households. The 12th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Fuzhou, China.

Progress 10/01/16 to 09/30/17

Outputs
Target Audience:The target audiences for this project included, but were not limited to,other researchers, academics, government agencies, NGOs, foundations, world organizations (e.g., United Nations, OECD, World Bank), central banks, development banks, rural credit cooperatives, microfinance institutions, and private sector enterprises interested in efforts related to national and global issues related to financial inclusion. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Dr. Lyons has been working with the China Executive Leadership Program (CELP) at the University of Illinois at Urbana-Champaign. Through CELP, Dr. Lyons offers lectures and training sessions to international executives from the financial industry in China related to her research in global financial inclusion. Currently, Dr. Lyons is partnering on several research projects and faculty and student exchanges with Southwestern University of Economics and Finance in Chengdu, China and the Chinese Academcy of Financial Inclusion (CAFI) at Renmin University in Beijing, China as well as a few other universities in Brazil and India. How have the results been disseminated to communities of interest?Research has been presented at leading international conferences, the Asian Development Bank Institute, top research universitites in China, and the financial industry both in the U.S. and globally. What do you plan to do during the next reporting period to accomplish the goals?Weplan to publish existing manuscripts in academic research journals. Several new manuscripts are currently underway. The PI will present new and existing work at leading research meetings in the U.S. and abroad as opportunities arise. Also, faculty and graduate student exchanges will continue in 2018.

Impacts
What was accomplished under these goals? Goals 1, 2, 3, 4, 7, and 8 were accomplished via the manuscripts, publications, presentations, and survey instruments listed in the progress/output section. The research produced from this project was presented in numerous domestic and international venues to numerous stakeholders worldwide.

Publications

• Type: Journal Articles Status: Published Year Published: 2017 Citation: Lyons, A.C., Grable, J.E. and Zeng, T. 2017. Infrastructure, urbanization, and the financial inclusion of Chinese households. ADBI Working Paper Series, No. 767. Tokyo, Japan: Asian Development Bank Institute.
• Type: Journal Articles Status: Under Review Year Published: 2017 Citation: Lyons, A.C., Grable, J.E. and Joo, S.H. 2017. A cross-country analysis of population aging and financial security. SSRN Working Paper Series. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3015386.
• Type: Journal Articles Status: Under Review Year Published: 2017 Citation: Lyons, A.C. and Contreras, S.A. 2017. A simultaneous equation of youth entrepreneurship and financial inclusion across developing countries. SSRN Working Paper Series. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3053615.
• Type: Journal Articles Status: Under Review Year Published: 2017 Citation: Lyons, A.C., Grable, J.E. and Zeng, T. 2017. Impacts of financial literacy on loan demand of financially excluded households in China. SSRN Working Paper Series. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3075003.
• Type: Journal Articles Status: Under Review Year Published: 2017 Citation: Lyons, A.C. and Kass-Hanna, J. 2017. Financial inclusion, financial literacy and women, youth, and the poor in the Middle East and North Africa (Working Paper). Urbana, IL: University of Illinois at Urbana-Champaign.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Infrastructure, urbanization, and financial inclusion of Chinese households (Conference presentation). The Chinese Academy of Financial Inclusion (CAFI), Renmin University, Beijing, China.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. The future of financial literacy research: New and innovative opportunities from around the world (Conference presentation). The Chinese Academy of Financial Inclusion (CAFI), Renmin University, Beijing, China.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Infrastructure, urbanization, and demand for bank and non-bank loans of Chinese households (Conference presentation). Chinese Economists Society Annual Conference in Nanjing, China.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Financial services in rural China: Opportunities and challenges (Lecture). Shanghai Rural Commercial Bank (SRCB), University of Illinois China Executive Leadership Program, Champaign, IL.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Infrastructure, urbanization, and demand for bank and non-bank loans of Chinese households (Seminar presentation). 5th Seminar on Asia and Pacific Economies, Xian Jiaotong-Liverpool University and Asian Development Bank Institute, Suzhou, China.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A C. 2017. The future of financial literacy research: New and innovative opportunities from around the world (Keynote address). The Birmingham Financial Education Conference, The Regions Institute for Financial Education, The University of Alabama at Birmingham.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. A cross-country evaluation of financial security and population aging: A financial planning perspective (Conference presentation). CFP Boards 2017 Academic Research Colloquium for Financial Planning and Related Disciplines, Washington, DC.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2016. Urbanization, infrastructure, and demand for bank and non-bank loans of Chinese households (Conference presentation). Asian Development Bank Institute and Sogang University, Seoul, South Korea.
• Type: Journal Articles Status: Accepted Year Published: 2018 Citation: Grable, J.E. and Lyons, A.C. 2018. Exploring the theoretical and methodological issues surrounding the relationship between risk tolerance and wealth accumulation. Journal of Financial Service Professionals.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Behavior economics: Innovations in banking and finance (Lecture). Zhejiang Rural Credit Cooperative (ZJRC), University of Illinois China Executive Leadership Program, Champaign, IL.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Lyons, A.C. 2017. Challenges and opportunities for digital finance in China (Lecture). Zhejiang Rural Credit Cooperative (ZJRC), University of Illinois China Executive Leadership Program, Champaign, IL.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Contreras, S.A. and Lyons, A.C. 2017. A simultaneous equation of youth entrepreneurship and financial inclusion across developing countries. 2017 Southern Regional Science Association Conference, Memphis, TN.
• Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Contreras, S.A. and Lyons, A.C. 2017. A simultaneous equation of youth entrepreneurship and financial inclusion across developing countries. University of Illinois Regional Economics Applications Laboratory Seminar Series, Urbana, IL.

Progress 10/28/15 to 09/30/16

Outputs
Target Audience:Target audiences reached during this reporting period include, but are not limited to, other researchers, policymakers, central banks, development banks, government agencies, world organizations, private-sector entities, NGOs, and population groups who have been traditionally disadvantaged socially, economically, and educationally (e.g., rural, illiterate, migrant, youth, women, elderly). Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?As a result of this work, Dr. Lyons was invited to train a group of financial executives. Financial Inclusion in China: Opportunities and Challenges. Industrial and Commercial Bank of China (ICBC), University of Illinois China Executive Leadership Program, Champaign, Illinois, June 2016. In the past year, she has also been invited to participate in a number of high-level stakeholder meetings: Institute of International Finance (IIF).Financial Inclusion: Moving From Access to Use. Washington, DC, October 2016 (private roundtable, invited participant). The Brookings Institution. Brookings Financial and Digital Inclusion Project (FDIP), Gender and Financial Inclusion (private roundtable, invited participant), 2016. Center for Global Development.Anti-Money Laundering Policies, De-Risking, and Challenges for Emerging Markets, Washington, DC, November 2015 (invited guest). The Brookings Institution. Brookings Financial and Digital Inclusion Project (FDIP), Washington, DC, October 2015 (private roundtable, invited participant). Asian Development Bank and Sogang University, Seoul, South Korea, December 2016 (private conference, invited participant). She will also give the keynote address at The Birmingham Financial Education Conference, The Regions Institute for Financial Education, The University of Alabama at Birmingham in February 2017. How have the results been disseminated to communities of interest?Results have been disseminated at international high-level stakeholder meetings, conferences, and trainings both in the U.S. and internationally, with a primary focus on Asia. What do you plan to do during the next reporting period to accomplish the goals?We will continue this line of research with the goal of disseminating the work via publications and presentations at high-level stakeholder meetings in the U.S. and around the globe.

Impacts
What was accomplished under these goals? Under Goals #1, 3, 4, 7, and 8, the following manuscripts were prepared and presented at universities and conferences in Asia - most notably the Asian Development Bank. These manuscripts have been submitted (or will soon be submitted) for review for publication in academic journals: Lyons, A. C., Grable, J., Zeng, T., Chen, L. and Liu, J. 2016. Impacts of Financial Literacy, Familial Networks, and Financial Access on Demand for Bank and Non-Bank Loans of Financially Excluded Households in China. Lyons, A. C. Grable, J. and Zeng, T. 2017. Urbanization, Infrastructure, and Demand for Bank and Non-Bank Loans of Chinese Households. Asian Development Bank Institute Working Paper. Lyons, A. C. and Kass-Hanna, J. 2016. Financial Inclusion and Women, Youth, and Refugees in Middle East and North Africa. Working Paper.Urbana, IL: University of Illinois at Urbana-Champaign. Under Goals #2, 5, 7, and 8, the following manuscripts were prepared and presented at universities and conferences in the U.S. and Asia - most notably CFP Board's 2017 Academic Research Colloquium for Financial Planning and Related Disciplines. These manuscripts have been submitted (or will soon be submitted) for review for publication in academic journals: Lyons, A. C., Grable, J. and Chen, L. 2016. Economic Expectations and Investment Behaviors of Chinese Households: An Investigation of the Securities and Housing Markets. The 11th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Hong Kong. Lyons, A. C., Grable, J. E. and Joo, S. H. 2017. A Cross-Country Evaluation of Financial Security and Population Aging: A Financial Planning Perspective. CFP Board's 2017 Academic Research Colloquium for Financial Planning and Related Disciplines. Washington, DC, February 2017. Lyons, A. C., Grable, J. E. and Joo, S. H. 2016. Financial Security and the Impacts of Financial Inclusion Across Aging Populations. Working Paper. Urbana, IL: University of Illinois at Urbana-Champaign. Lyons, A. C. and Kass-Hanna, J. 2016. Financial Inclusion and Women, Youth, and Refugees in Middle East and North Africa. Working Paper.Urbana, IL: University of Illinois at Urbana-Champaign. Under Goals #3 and 8, the following manuscript was prepared and presented at conferences in the U.S. such as the Illinois Economics Association. Lyons, A. C. and Contreras, S. A. 2016. A Simultaneous Equations Model of Youth Entrepreneurship and Financial Inclusion in Developing Countries. Working Paper. Urbana, IL: University of Illinois at Urbana-Champaign. As a result of this line of research, Dr. Lyons has been able to establish a number of formal research agreements and collaborations with researchers and institutions around the world in countries including, but not limited to: China, South Korea, Lebanon, Brazil, Chile, and India.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Lyons, A. C., Grable, J., Chen, L., He, X., Liu, J. and Zeng, T. 2016. Impacts of Financial Literacy, Familial Networks, and Financial Access on Demand for Bank and Non-Bank Loans of Financially Excluded Households in China. The 11th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Hong Kong.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Lyons, A.C., Grable, J. and Chen, L. 2016. Economic Expectations and Investment Behaviors of Chinese Households: An Investigation of the Securities and Housing Markets. The 11th Biennial Conference Proceedings of Asian Consumer and Family Economics Association, Hong Kong.
• Type: Other Status: Awaiting Publication Year Published: 2017 Citation: Lyons, A.C., Grable, J. and Zeng, T. 2017. Urbanization, Infrastructure, and Demand for Bank and Non-Bank Loans of Chinese Households. Asian Development Bank Institute Working Paper.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2017 Citation: Lyons, A.C., Grable, J.E. and Joo, S.H. 2017. A Cross-Country Evaluation of Financial Security and Population Aging: A Financial Planning Perspective. CFP Boards 2017 Academic Research Colloquium for Financial Planning and Related Disciplines. Washington, DC, February 2017.
• Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Lyons, A.C., Grable, J.E. and Joo, S.H. 2016. Financial Security and the Impacts of Financial Inclusion Across Aging Populations. Working Paper. Urbana, IL: University of Illinois at Urbana-Champaign.
• Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Lyons, A.C. and Contreras, S.A. 2016. A Simultaneous Equations Model of Youth Entrepreneurship and Financial Inclusion in Developing Countries. Working Paper. Urbana, IL: University of Illinois at Urbana-Champaign.
• Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Lyons, A.C., Grable, J.E., Zeng, T., Chen, L. and Liu, J.H. 2016. Impact of Financial Literacy on Demand for Bank and Non-Bank Loans of Financially Excluded Households in China. Working Paper. Urbana, IL: University of Illinois at Urbana-Champaign.