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Economics Assignment, NUS, Singapore Several recent studies have highlighted that the strength of family ties (SFT) is related to various economic and social outcomes
Family ties play a fundamental role in the development of human society. Several recent studies have highlighted that the strength of family ties (SFT) is related to various economic and social outcomes.
In particular, Alesina and Giuliano (2010) find that SFT is associated with higher home production activity and larger family size, but lower levels of female labor force participation and geographical mobility.
Alesina and Giuliano (2011) show that individuals that rely more on family tend to have lower levels of civic engagement and political participation. Alesina and Giuliano (2014) also propose that SFT is strongly correlated with lower GDP and lower quality of institutions. However, despite these findings, the association between SFT and financial outcomes has not been investigated in the literature and is consequently not well understood.
An economic student has provided the following scatter plots that depict the relationship between SFT (average values from 1981-2014) and account ownership rate in 2014.
However, he is unsure how to provide an economic interpretation of the results. Can you suggest a conceptual framework that can be used for understanding how, in principle, SFT is related to financial inclusiveness?
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