The impact of financial literacy on remittance decisions in transnational households: The case of Mongolian migrants in Japan

2020 Fiscal Year Research-status Report

• Project/Area Number: 19K13713
• Research Institution: JICA Ogata Sadako Research Institute for Peace and Development
• Principal Investigator: 村上 エネレルテ 独立行政法人国際協力機構(緒方貞子平和開発研究所), 研究所, 研究員 (60835867)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: Financial literacy / Financial inclusion / International migration / Remittances

Outline of Annual Research Achievements

In the FY2020, the following research activities were accomplished: (1) the online survey setup, (2) the survey implementation for Mongolian migrants in Japan, (3) the survey implementation for their families in Mongolia, (4) the preparation of financial literacy lessons, (5) the baseline data cleaning and randomization for the financial literacy training, and (6) the provision of the online lessons to the treatment group. A total of eight thematic and one general lessons on financial literacy has been prepared. The topics include (1) An introduction to personal finance, (2) Household budget, (3) Saving, (4) Investment, (5) Financial risks, (6) Loan, (7) Insurance, (8) Fintech, and (9) Sending and receiving remittances.

Current Status of Research Progress

3: Progress in research has been slightly delayed.

Reason

Due to the COVID-19 outbreak worldwide, the research implementation plan has been re-designed to implement the surveys and financial literacy interventions through an online platform, which resulted in a slight delay in the implementation.

Strategy for Future Research Activity

In the FY2021, the following work has been planned: (1) the completion of the financial literacy training, (2) a baseline survey report, (3) the implementation of the follow-up surveys, and (4) data cleaning and analyses of the follow-up survey. It is also planned to carry out an empirical analysis on financial inclusion and financial literacy using a nationally representative database.

Causes of Carryover

Due to the COVID-19 pandemic, the survey implementation plan has shifted from face-to-face to online surveys. Reasons for incurring amount is the change of the implementation plan and cancelations of business trips to the field. The incurring amount is planned to be used for English proofreading, journal open-access fee, participation in academic conferences, and purchases of books and software.