The impact of financial literacy and risk attitude on borrowing behavior and asset accumulation of households in Kyrgyzstan

Abstract

This thesis evaluates the impact of financial literacy and risk attitude on borrowing behavior and asset accumulation in Kyrgyz households, because there is an issue with rising household debt. The study examines the relationship between borrowing decisions and wealth accumulation with individual factors of financial knowledge and readiness to take financial risks using a quantitative approach, mainly logistic regression, linear regression model, IV methods and data from the 2019 "Life in Kyrgyzstan" survey. There were studies analyzing the borrowing behavior or asset accumulation separately, but this study will include a combined analysis on developing country like Kyrgyzstan. Key words: borrowing behavior, asset accumulation, wealth accumulation, households, Kyrgyzstan, financial literacy, risk attitude.