Comparative Analysis of Economic Literacy among University Students in Urban and Rural Areas

Thesis Abstract

The disparity in economic literacy levels among university students in urban and rural areas presents a significant challenge to economic empowerment and informed decision-making, necessitating a comprehensive investigation into the underlying factors influencing these differences. This study aims to conduct a comparative analysis of economic literacy among university students in urban and rural settings, with specific objectives to assess the levels of economic understanding, identify socio-economic and educational determinants, and examine the influence of access to information and resources on students’ economic knowledge. Employing a quantitative cross-sectional research design, the study targeted a population of 2,000 undergraduate students from three major universities—two in urban centers and one in a rural locale—using a stratified random sampling technique to select a representative sample of 600 participants (200 from each university). Data collection was conducted through a structured questionnaire comprising both closed and Likert-scale items, validated through pilot testing and expert review to ensure content validity, with reliability confirmed via Cronbach’s alpha coefficient of 0.85. The questionnaire measured dimensions of economic literacy including economic concepts, financial literacy, understanding of economic policies, and ability to analyze economic news. Data analysis was performed using SPSS version 26, employing descriptive statistics to profile the sample, followed by inferential techniques including independent samples t-tests to compare mean literacy scores between groups, and multiple regression analysis to examine the influence of demographic and socio-economic variables on economic literacy levels. Additionally, analysis of variance (ANOVA) was used to explore differences within specific subgroups. The theoretical framework grounded in the Rational Choice Theory and the Knowledge Gap Hypothesis guided the analysis, positing that access to information and socio-economic status significantly impact economic literacy outcomes. It is anticipated that the findings will reveal statistically significant disparities in economic literacy, with urban students exhibiting higher levels of understanding compared to their rural counterparts, attributable to better access to educational resources, information technologies, and exposure to economic activities. The study expects to identify key determinants such as parental education, socio-economic background, and access to economic information sources. These insights aim to deepen the understanding of how structural factors influence economic literacy and contribute to academic literature by filling existing gaps concerning rural-urban differences within developing country contexts, thus expanding the theoretical understanding of socio-economic influences on financial and economic knowledge among youth. The research will contribute to existing knowledge by providing empirical evidence on the disparities in economic literacy, informing policymakers and educational institutions on the need for targeted interventions to bridge the urban-rural knowledge gap. The main conclusion underscores the urgency of integrating comprehensive financial and economic education into university curricula, with special emphasis on rural access and resource provision. It recommends the development of tailored financial literacy programs for rural students, enhancement of digital and media literacy, and policies that foster equitable access to economic information. Furthermore, the study advocates for longitudinal research to assess the impact of educational reforms and information campaigns on economic literacy over time, ultimately fostering more inclusive economic participation and decision-making among young university populations across diverse geographical settings.