The Effect of Financial Literacy and Internal Migration on Financial Inclusion in Kazakhstan

Abstract

Recently, fi nancial literacy has been an important issue to discuss all over the world. By increasing the financial literacy level of a nation, we can improve the welfare level of the country. Kazakhstan has not been a subject of research of this topic. Having conducted an original survey throughout the whole country, I find that the financial literacy level is relatively low at the moment. Because of that, nancial participation of the population in general is weak. Adapting two probit models I estimate the effects of financial literacy and internal migration from rural to urban area on financial inclusion.