Relationship Between Financial Literacy and Green Microfinance: An Investigation of Partial Least Squares-Multigroup Analysis

Min-Sun Kim and Andrian Dolfriandra Huruta

A chapter in The Finance-Innovation Nexus: Implications for Socio-Economic Development, 2024, vol. 34, pp 205-214 from Emerald Group Publishing Limited

Abstract: The aim of this research is to attempt to identify the impact of gender in the relationship between financial literacy and green microfinance practice in rural area. This research was set to add a comprehensive view to existing studies of green microfinance by observing gender. This research employed non-probability purposive sampling to collect samples from women microfinance group in East Sumba, Indonesia. This research used partial least squares-multigroup analysis (PLS-MGA) for analysis. This research presents empirical evidence to support that financial literacy is positively linked to green microfinance. In the meantime, this research shows the impact of gender in the relationship between financial literacy and green microfinance. The findings suggest that a female has a bigger role than a male in the relationship between financial literacy and green microfinance. It is a significant step forward in our understanding of green microfinance.

Keywords: Green microfinance; financial literacy; gender; women microfinance group; rural development; PLS-MGA; F63; G21; G28 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-038620240000034017

DOI: 10.1108/S1571-038620240000034017

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