Digital Financial Inclusion, Household Financial Participation and Well-Being: Micro-Evidence from China

Du, Qunyang; Zhou, Fangxing; Yang, Tianle; Du, Min

Abstract

Though financial inclusion has drawn a lot of attention lately, especially in emerging markets, it remains unclear how it affects household well-being. This study investigates the connection between digital financial inclusion (DFI) and household well-being using two databases in China. The findings suggest that DFI is positively associated with household well-being. Mechanism analysis reveals that a rise in DFI facilitates household financial participation, thereby increasing the probability of household well-being. Our further empirical analysis demonstrates that groups with lower education and income levels are more significantly affected by DFI regarding household well-being. Overall, the research provides empirical evidence for the assertion that expanding financial inclusion in the digital economy era can promote social fairness and provide a basis for a vigorous expansion of financial inclusion in emerging economies.

• Journal Article Type: Article
• Acceptance Date: Nov 22, 2022
• Online Publication Date: Dec 19, 2022
• Publication Date: 2023
• Deposit Date: Dec 20, 2022
• Publicly Available Date: Jun 20, 2024
• Print ISSN: 1540-496X
• Electronic ISSN: 1558-0938
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 59
• Issue: 6
• DOI: https://doi.org/10.1080/1540496x.2022.2153592
• Keywords: Digital financial inclusion, household well-being, household financial participation
• Public URL: http://researchrepository.napier.ac.uk/Output/2986925