Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter?
Abstract
:1. Introduction
2. Literature Review and Hypothesis Development
2.1. Women’s Empowerment and Financial Literacy
2.2. Financial Literacy and Green Microfinance
2.3. Women’s Empowerment and Green Microfinance
2.4. Women’s Empowerment, Green Microfinance, and Financial Literacy
3. Methods
4. Results
5. Discussion
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Component | Code | Indicators |
---|---|---|
Women | Women1 | Women’s economic engagement in MFIs increases as their financial literacy improves. |
Women2 | After gaining adequate financial literacy, women play an important part in MFI decision-making. | |
Women3 | The members of MFIs who have good financial literacy can earn more money. | |
Women4 | Increased financial participation by women due to improved financial knowledge can help MFIs grow. | |
Women5 | MFIs’ financial capability can be increased by increasing the income of their female members. | |
Literacy | Literacy1 | My business will be benefitted by a low-interest loan. |
Literacy2 | It is necessary to set up funds for unplanned expenses. | |
Literacy3 | Purchasing life insurance will protect you from the risk of accidents and other disasters. | |
Literacy4 | The debit side records incoming funds, while the credit side records outgoing funds. | |
Literacy5 | Making a financial budget is important for determining funding priorities. | |
Literacy6 | Saving money in a variety of assets reduces the risk of losing money. | |
Green | Green1 | MFIs offer soft loans for eco-friendly businesses. |
Green2 | Live pharmacy is encouraged by MFIs. | |
Green3 | MFI members follow the principle of affordability by performing tasks efficiently. | |
Green4 | MFIs help to reduce grassland and forest fires. | |
Green5 | In MFIs, utensils are used repeatedly. | |
Green6 | MFIs have a recycling policy. |
No. | Demographic Factor | Frequency | % |
---|---|---|---|
1 | Gender | ||
Female | 71 | 100.0 | |
2 | Age | ||
21–25 years old | 15 | 21.1 | |
26–30 years old | 6 | 8.5 | |
31–35 years old | 13 | 18.3 | |
36–40 years old | 7 | 9.9 | |
>40 years old | 30 | 42.3 | |
3 | Education | ||
No education | 24 | 33.8 | |
Elementary school | 16 | 22.5 | |
Junior high school | 12 | 16.9 | |
Senior high school | 17 | 23.9 | |
Bachelor | 2 | 2.8 | |
4 | Occupation | ||
Teacher | 1 | 1.4 | |
Housewife | 25 | 35.2 | |
Entrepreneur | 3 | 4.2 | |
Farmer | 42 | 59.2 | |
5 | Monthly income | ||
<US$200 | - | - | |
≥US$200–500 | 68 | 95.8 | |
>US$500 | 3 | 4.2 |
Component | AVE | CR | CA | rho_A | Reflective Model | Outer Loadings |
---|---|---|---|---|---|---|
Women’s Empowerment | 0.613 | 0.885 | 0.835 | 0.868 | Women1 ← Women | 0.878 |
Women2 ← Women | 0.881 | |||||
Women3 ← Women | 0.867 | |||||
Women4 ← Women | 0.670 | |||||
Women5 ← Women | 0.566 | |||||
Green Microfinance | 0.630 | 0.909 | 0.879 | 0.906 | Green1 ← Green | 0.727 |
Green2 ← Green | 0.662 | |||||
Green3 ← Green | 0.655 | |||||
Green4 ← Green | 0.882 | |||||
Green5 ← Green | 0.904 | |||||
Green6 ← Green | 0.890 | |||||
Financial Literacy | 0.519 | 0.864 | 0.833 | 0.895 | Literacy1 ← Literacy | 0.799 |
Literacy2 ← Literacy | 0.855 | |||||
Literacy3 ← Literacy | 0.695 | |||||
Literacy4 ← Literacy | 0.628 | |||||
Literacy5 ← Literacy | 0.708 | |||||
Literacy6 ← Literacy | 0.604 |
HTMT | Original Sample | Bias | 2.5% | 97.5% |
---|---|---|---|---|
Green → Literacy | 0.791 | 0.009 | 0.686 | 0.878 |
Women → Literacy | 0.599 | 0.019 | 0.400 | 0.730 |
Women → Green | 0.833 | −0.001 | 0.651 | 0.964 |
Hypothesis | Effect | β | p-Value | Decision |
---|---|---|---|---|
1 | Women → Literacy | 0.566 | 0.000 *** | H1 is supported |
2 | Literacy → Green | 0.604 | 0.000 *** | H2 is supported |
3 | Women → Green | 0.365 | 0.000 *** | H3 is supported |
4 | Women → Literacy → Green | 0.342 | 0.000 *** | H4 is supported |
Mediation | Test statistic | Std. Error | p-value | Decision |
Sobel test | 5.304 | 0.064 | 0.000 *** | Mediation is supported |
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Lee, C.-W.; Huruta, A.D. Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter? Sustainability 2022, 14, 3130. https://doi.org/10.3390/su14053130
Lee C-W, Huruta AD. Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter? Sustainability. 2022; 14(5):3130. https://doi.org/10.3390/su14053130
Chicago/Turabian StyleLee, Cheng-Wen, and Andrian Dolfriandra Huruta. 2022. "Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter?" Sustainability 14, no. 5: 3130. https://doi.org/10.3390/su14053130
APA StyleLee, C. -W., & Huruta, A. D. (2022). Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter? Sustainability, 14(5), 3130. https://doi.org/10.3390/su14053130