Investigating the short-term and long-term effects of financial literacy, financial inclusion and social development on financial stability in OPEC countries using the PARDL method

Subject Areas : Journal of Iranian Social Development Studies

Marwan abdulrazak muter ¹ , hosein sharifi renani ^{2 *} , adeeb GHasem SHandi ³ , Bahar Hafezi ⁴

1 - Ph.D Student Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
3 - Professor of Economics at Kut University, Wasit, Iraq
4 - Assistant Professor of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran

Received: 2024-05-14 Accepted : 2024-06-19 Published : 2024-03-09

Keywords: Social Development, Financial Inclusion, Financial Literacy, Financial Stability. ,

Abstract :

Social development is the process of creating fundamental transformations with the aim of social integration, social cohesion, and accountability of facilities brokers and powerful organizations, which can have economic consequences due to its multidimensional nature. Among these consequences, we can refer to the category of financial stability. In addition, financial inclusion and financial literacy are two other concepts that can be related to financial stability. In this regard, in this research, the short-term and long-term effects of financial literacy, financial inclusion and social development on financial stability in 17 OPEC member countries including Algeria, Iran, Iraq, Kuwait, Libya, Solomon Islands, Qatar, Saudi Arabia, United Arab Emirates, Ecuador, Angola, Venezuela, Nigeria, Gabon, Guinea, Congo and Indonesia are covered during the years 2010 to 2023. In order to analyze the data, the panel data regression method with the autoregression approach with PARDL distribution breaks has been used. The findings of the research showed that the promotion of social development can have a positive and strengthening role in the financial stability of the studied countries in the short and long term. Other findings showed that financial inclusion had a negative effect in the short term, but a positive and significant effect on financial stability in the studied countries in the long term. It was also observed that finally, financial literacy has been able to improve financial stability in the studied countries both in the short term and in the long term. Based on this, it is concluded that social development, due to its broad dimensions, as well as financial inclusion and financial literacy, should be considered as effective factors on financial stability in the countries under review, both in the short term and in the long term. There should be an opinion.

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