Digital Financial Inclusion and Consumption Smoothing in China

Lai, Jennifer T.; Yan, Isabel K.; Xing-jian, YI; Zhang, Hao

doi:10.1111/cwe.12312

Cited by 85 publications

(51 citation statements)

References 25 publications

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“…A platform provided by digital finance facilitates increases in financial transactions, which subsequently generates higher tax revenue, benefiting governments that can then exert direct influence by orienting their activities [13,14]. Digital financial inclusion has diminished households' ability to insure against transitory income shocks, partly because the online purchase may lead to the oversensitivity of consumption to income [15]. Through investigation, Kemal found that digital payment enables female beneficiaries to receive social cash securely and conveniently [16].…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants and Mechanisms of Digital Financial Inclusion Development: Based on Urban-Rural Differences

Guang

Huang

2021

Agronomy

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The combination of digital finance and financial inclusion can better meet the needs of those who have little access to financial services. This paper investigated the differences in the determinants and mechanisms of digital financial inclusion development between urban and rural areas. The sample consists of 1607 counties in China from 2014 to 2019, and uses the fixed-effect model and panel threshold technique. The empirical results indicate that: (1) The industrial economy and governmental intervention are the common determinants of urban and rural digital financial inclusion development, in which the degree is different. At the same time, secondary education is only a determinant in rural areas. (2) Industrial upgrading and indirect finance play a mediating role in the determinants of digital financial inclusion, but indirect finance is only significant for urban areas. (3) There is a threshold effect in the financial development-digital financial inclusion relationship. Under different financial development levels, the determinants of urban and rural digital financial inclusion show the discrepancy. With the development of digital financial inclusion under the trend of promoting innovative digital finance in China, these findings are expected to enhance access to financial services in urban and rural areas for more inclusive and sustainable futures.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants and Mechanisms of Digital Financial Inclusion Development: Based on Urban-Rural Differences

Guang

Huang

2021

Agronomy

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“…e core data used in this study are the "Peking University Digital Financial Inclusion Index of China," which is compiled on the basis of hundreds of millions of microdata from a representative digital financial institution in China; this dataset reflects the cross-section and cross-time changes in the acquisition and use of digital financial services in China [31]. e index covers 31 provinces, 337 prefecture-level cities (regions, autonomous prefectures, and leagues collectively referred to as "cities"), and nearly 2,800 counties (county-level cities, banners, and municipal districts collectively referred to as "counties").…”

Section: Data Sourcesmentioning

confidence: 99%

Spatial Association and Explanation of China’s Digital Financial Inclusion Development Based on the Network Analysis Method

et al. 2021

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As an essential direction for developing inclusive finance, digital financial inclusion breaks through the time and space constraints of inclusive finance development and has extensive connections between different regions. However, no research has modelled the network connections and the role and position of different digital financial inclusion development regions. This study constructed the spatial association network of China’s digital financial inclusion development and used the network analysis method and the quadratic assignment procedure (QAP) method to study the structural and locational properties and the influencing factors of the network. We found that (1) although the network had a relatively low density, its connectivity and stability were excellent, and the network structure is not hierarchical; (2) the centrality of some rapidly developing central and western provinces was greater than that of some developed eastern provinces; (3) developed eastern provinces played a net spillover role, driving the development of digital financial inclusion in central and western provinces; and (4) the spatial association was affected by the development level of the PC Internet and economy, the industrial structure, and the spatial adjacency. This study enriches the research on digital financial inclusion and provides a scientific basis for the formulation and implementation of policies to promote the further development of digital financial inclusion.

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“…Digital finance is a new financial format that relies on the Internet and information technology tools to carry out financial services and benefit more groups [ 18 , 20 , 24 , 25 ]. In essence, it is an important type and application of Financial Technology (FinTech) [ 26 ].…”

Section: Introductionmentioning

confidence: 99%

Poverty reduction in rural China: Does the digital finance matter?

Chen

Zhao

2021

PLoS ONE

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As digital finance is widely spread and applied in China, this new format of financial technology could become a new way to reduce poverty in rural areas. By matching digital financial indexes of the prefectural-level cities with microdata on rural households from the China Household Finance Survey (CHFS) in 2017, we find that digital finance significantly suppresses absolute poverty and relative poverty among rural households in China, which is supported by a series of robustness tests, such as the instrumental variable approach, using alternative specifications, and excluding extreme observations. Additionally, we provide evidence that the poverty reduction effect of digital finance is likely to be explained by alleviating credit constraints and information constraints, broadening social networks, and promoting entrepreneurship. Our findings further complement the research field on financial poverty reduction and offer insights for the development of public financial policies of poverty reduction in other countries, especially in some developing countries.

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Digital Financial Inclusion and Consumption Smoothing in China

Cited by 85 publications

References 25 publications

Determinants and Mechanisms of Digital Financial Inclusion Development: Based on Urban-Rural Differences

Determinants and Mechanisms of Digital Financial Inclusion Development: Based on Urban-Rural Differences

Spatial Association and Explanation of China’s Digital Financial Inclusion Development Based on the Network Analysis Method

Poverty reduction in rural China: Does the digital finance matter?

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