Green Microfinance and Women’s Empowerment: Why Does Financial Literacy Matter?

Cheng-Wen Lee and Andrian Dolfriandra Huruta
Additional contact information
Cheng-Wen Lee: Department of International Business, College of Business, Chung Yuan Christian University, 200 Zhong Bei Rd, Taoyuan 32023, Taiwan
Andrian Dolfriandra Huruta: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, 200 Zhong Bei Rd, Taoyuan 32023, Taiwan

Sustainability, 2022, vol. 14, issue 5, 1-13

Abstract: This study investigated the role of financial literacy in the relationship between women’s empowerment and green microfinance. We set a conceptual model with green microfinance as an outcome variable, financial literacy as a mediating variable, and women’s empowerment as an exposure variable. Variance-based SEM was employed for analysis. The results show that the exposure and mediating variables have a significant direct and indirect impact on the outcome variable. The relationship between women’s empowerment and green microfinance is partially mediated by financial literacy. Local wisdom-based financial literacy is found to be an alternative for mainstreaming women’s empowerment in local development. In addition, gender-targeted programs need to consider pro-literacy policies for achieving green microfinance sustainability. By using financial literacy as a mediating variable, this study contributes to the current literature on the relationship between women’s empowerment and green microfinance.

Keywords: green microfinance; women’s empowerment; financial literacy; mediation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/5/3130/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/5/3130/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:5:p:3130-:d:766030

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().