Does Digital Financial Inclusion Reduce China’s Rural Household Vulnerability to Poverty: An Empirical Analysis From the Perspective of Household Entrepreneurship

Abstract

This paper evaluates the impact of digital financial inclusion (DFI) powered by digital technologies on rural household vulnerability to poverty based on data from the China Family Panel Studies (CFPS) and DFI data from the Institute of Digital Finance Peking University. The results show that both DFI and its secondary indicators reduce rural household vulnerability to poverty. Household entrepreneurship is an intermediary factor of DFI influencing vulnerability to poverty; that is, DFI stimulates rural households’ entrepreneurial behavior, thereby reducing their vulnerability to poverty. Through the analysis of income heterogeneity, financial development level, and human capital in the region, it is found that DFI is more helpful in reducing the vulnerability to poverty for rural households with low income, a low level of financial development and low human capital. Therefore, the Chinese government should map out the DFI development path, build a DFI control system with internet technologies, and actively play the mutually supporting role of DFI and other influencing factors to boost DFI development, minimize the risk of returning to poverty and thereby reduce rural household vulnerability in China.

Exploring the role of the belt and road initiative in promoting sustainable and inclusive development

“…In conclusion, although the present research has evaluated the effects of the B&R from various aspects and discussed the impact of the initiative on sustainable and inclusive development, the following two aspects should be highlighted in the research. First, from a research perspective, existing empirical studies on the effects of B&R do not involve sustainable and inclusive development (Chen et al, 2022). Sustainable and inclusive development, which encompasses the equitable distribution of resources and opportunities among all members of society, is crucial for sustainable economic development and social stability.…”

Can China’s Digital Inclusive Finance Alleviate Rural Poverty? An Empirical Analysis from the Perspective of Regional Economic Development and an Income Gap

“…Most scholars believe that DIF reduces financial transaction costs and credit costs to a greater extent through digital techniques. For instance, the internet, cloud computing, and big data reduce financial exclusion, increase the availability of financial services to poverty groups, and thus promote the entrepreneurship and employment of poor residents to achieve income growth for poverty alleviation purposes [27][28][29]. The second is poverty reduction through economic channels.…”

Big Data, Financial Digitalization and Enterprises’ Shift from Real to Virtual

“…They should make vulnerable groups like farmers, the self-employed, small businesses, and micro enterprises their primary clients, provide them the right development finance solutions, and increase the accessibility of development financing in rural regions. In order to increase customer choice and boost financial and informational support for development financing of rural entrepreneurship, financial institutions must also provide a variety of development financing services and products [8].…”