Financial capability and inclusion in Morocco: The interplay of literacy, resilience, and social access

Abstract

This study examines how financial literacy influences household participation in Moroccan capital markets by integrating behavioral, psychological, and structural factors. Using a multi-wave nationally representative dataset from 2017, 2021, and 2024, it develops and tests a moderated mediation model that links financial literacy to investment behavior through financial resilience and perceived financial capability, while considering the moderating role of socioeconomic status. The analysis employs count, binary, and ordinal logit models to estimate both direct and indirect effects across income, education, and geographic groups. Results reveal a significant decline in objective financial literacy over time, persistent inequalities across gender and income, and a strong mediating effect of financial resilience. Perceived financial knowledge—reflecting confidence and self-efficacy—emerges as a more powerful predictor of market participation than factual knowledge, particularly among higher-income and better-educated households. These findings suggest that financial education alone is insufficient to foster investment engagement. Effective inclusion requires complementary strategies that build financial resilience, strengthen confidence, and expand structural access to financial markets. For policymakers advancing Morocco’s National Financial Inclusion Strategy (2023–2030), the results underscore the importance of coupling literacy initiatives with programs that enhance empowerment and provide inclusive, low-cost investment opportunities.