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Abstract
In recent years, rising living costs, limited social protection, and the COVID-19 pandemic have intensified financial concerns among households in developing and emerging economies. This study examines how financial worries influence borrowing behavior in five Turkic countries: Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye, and Uzbekistan. Using microdata from the Global FINDEX 2021 survey and logistic regression analysis, the paper evaluates the effects of various financial concerns while controlling for key socioeconomic characteristics. The results show that employment and education are the most consistent predictors of borrowing, reflecting greater financial inclusion among individuals with stable jobs and higher levels of human capital. Age effects are nonlinear, with middle-aged individuals more likely to borrow, while gender and rural–urban residence exhibit heterogeneous patterns across countries. Financial worries significantly shape borrowing behavior, often serving as a coping strategy under economic vulnerability. Concerns about medical expenses strongly increase borrowing, particularly in Kyrgyzstan, Uzbekistan, and Azerbaijan, while concerns about old-age security and monthly bills matter in specific contexts. Overall, borrowing reflects both structural access to finance and necessity-driven responses to financial stress, highlighting the importance of affordable credit, financial literacy, and stronger social protection systems.
