Economic Literacy In Global Perspective: A Comparative Review Of Research In Developing Countries

Abstract

Economic literacy is increasingly recognized as a critical determinant of entrepreneurial and economic outcomes in developing countries. However, existing evidence remains fragmented, largely country-specific, and lacks a systematic comparative synthesis explaining contextual variations across national settings. This study systematically reviews and comparatively synthesizes research on economic literacy across developing economies to examine its conceptualization, empirical effects, contextual determinants, and emerging theoretical patterns. Following PRISMA 2020 guidelines, a systematic search of Scopus, Web of Science, EBSCO, ProQuest, and Google Scholar identified 127 eligible empirical studies conducted in 43 developing countries and published between 2013 and 2023. The review employs thematic synthesis and cross-country comparative analysis to identify convergent and divergent patterns across institutional, economic, and sociocultural contexts. Five major findings emerge. First, economic literacy is frequently conflated with financial literacy, reducing conceptual precision and limiting cross-national comparability. Second, although economic literacy consistently promotes entrepreneurial intention, business performance, innovation, and sustainability, the magnitude and mechanisms of these effects vary substantially across countries. Third, institutional quality, access to finance, digital capability, social capital, and gender-related constraints systematically explain these contextual differences. Fourth, digital literacy and social capital operate as complementary capabilities that strengthen the effectiveness of economic literacy under supportive institutional environments. Fifth, women entrepreneurs often achieve greater developmental gains from improvements in economic literacy despite lower initial literacy levels. Building on these comparative insights, this study proposes the Contextually Embedded Economic Literacy (CEEL) Framework. The framework extends human capital and entrepreneurial cognition perspectives by conceptualizing economic literacy as a context-dependent, multidimensional capability whose effectiveness is shaped by interactions among individual competencies, institutional conditions, and sociocultural environments. Rather than merely integrating existing constructs, the framework offers a comparative explanatory model that explains why similar levels of economic literacy produce different entrepreneurial outcomes across developing countries. The study advances a context-sensitive conceptualization of economic literacy while providing evidence-based guidance for designing adaptive literacy and entrepreneurship policies across diverse developing-country contexts.