The effect of digital finance on Residents' happiness: the case of mobile payments in China

Zhao, Chunkai; Li, Xing; Yan, Jianfeng

doi:10.1007/s10660-022-09549-5

Cited by 18 publications

(15 citation statements)

References 85 publications

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“…For example, previous studies have examined the relationship between DIF, and household financial investment and consumption behavior (He et al, 2022;Li et al, 2022;Yu et al, 2022). Particularly, how to measure the impact of DIF on household economic behavior when DIF affects both household financial investment and consumption has generally affected household behavioral choices and the inclusive application of DIF (Zhao et al, 2022). These studies centered on the substitution relationship between investment and consumption given household financial constraints.…”

Section: 3mentioning

confidence: 99%

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Unraveling the influence and mechanism of digital inclusive finance on household financial substitution: evidence from China

Sui

2023

APJML

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PurposeThe development of digital inclusive finance (DIF) has increased households' financial investments and consumption. However, few studies have considered whether DIF strengthens the substitution of household financial investment for consumption behavior. To clarify the relationship between DIF, household financial investment and household consumption behavior, the authors combine matched data from the China Family Panel Studies (CFPS) and Peking University Digital Inclusive Finance Index (2011–2018) to explore the impact of DIF on household financial substitution. This study aims to discuss the aforementioned objectives.Design/methodology/approachThis study's empirical analysis applies ordinary least squares (OLS) to answer how DIF affects household financial investment substitution for consumption. This study uses three approaches to examine the robustness of the benchmark regression model. These three approaches are replacing the core explanatory variables, using the lagged Digital Inclusive Finance Index and using the data of additional years. This article also assesses endogeneity by applying the instrumental variable method.FindingsThe results indicate that DIF significantly enhances household financial substitution. This article also assesses endogeneity by applying the instrumental variable method and robustness test methods. The impact mechanism test shows that DIF positively affects household financial substitution, by improving information dissemination efficiency and enhancing financial participation. Further research finds that the impact of DIF on household financial substitution is more pronounced in households with low to moderate savings rates, low to average income households and homes without family members who start their businesses.Research limitations/implicationsThis study analyzed the effect and mediating mechanisms of digital financial inclusion on household financial substitution. Like all studies, the research had some limitations. First, due to differences in culture and infrastructure development, people do not understand and judge economic behaviors, such as household financial investment and consumption, in the same way. It can lead to certain biases in their understanding and study responses. Second, the study is mainly based on data from China. Future studies should be extended to foreign countries for comparative analysis. Third, the development of DIF has not yet completed a full cycle, and many problems have not been fully identified.Practical implicationsThis study provides some practical implication. First, the public sectors should effectively weigh the spending relationship between household financial investment and consumption. Second, the public sector should focus on the policy optimization and consistency of DIF. The public sector should both enhance the breadth of coverage and depth of impact of DIF and focus on long-tail groups to fully reflect the equity and inclusiveness of DIF.Originality/valueThis study responds to the discussion on the relationship between financial investment, saving and consumption games in household expenditures and enhances our understanding of how DIF affects households' complex economic behavior. The most revealing finding is that DIF reinforces the substitution of household financial investment for household consumption. DIF positively affects household financial substitution by improving the efficiency of information dissemination and increasing financial participation, which is a valid extension of the study on the mechanisms of information dissemination and financial participation in financial investment and consumption proposed.

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Section: 3mentioning

confidence: 99%

“…, 2022). Particularly, how to measure the impact of DIF on household economic behavior when DIF affects both household financial investment and consumption has generally affected household behavioral choices and the inclusive application of DIF (Zhao et al. , 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Unraveling the influence and mechanism of digital inclusive finance on household financial substitution: evidence from China

Sui

2023

APJML

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“…According to Zhao et al (2022), vulnerable populations will benefit more from mobile payment’s favorable effects on consumption [ 34 ]. By exploring the data from the China Household Finance Survey, Zhao et al (2022) revealed that the subjective well-being of mobile payment users is higher than that of non-users [ 35 ].…”

Section: Background Literature Review and Theoretical Analysismentioning

confidence: 99%

“…On the other hand, for developing countries, such as China, where insurance markets are underdeveloped, social interaction is an important means of risk sharing [ 50 ]. Mobile payment can bring more frequent online or offline communication and social contact between households [ 35 , 51 ], which increases social interaction. For example, WeChat Pay is a product of China’s largest online social platform, WeChat.…”

Section: Background Literature Review and Theoretical Analysismentioning

confidence: 99%

Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China

Qiu

Xue

2022

IJERPH

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China has moved into a new stage of its fight against poverty, where the further raising of rural household income is of great importance. Health risk is one of the biggest obstacles to the poverty reduction progress. Therefore, how to cope with the negative effects of health risks has attracted the attention of scholars, especially in the background of the global outbreak of COVID-19. In this paper, we try to explore whether mobile payment, a new form of payment, can improve the income of rural households and mitigate the lower income condition caused by health risks in China. Using data from the 2017 China Household Finance Survey, we found: (1) mobile payment can substantially increase rural household income; (2) health risks will lower the income of rural residents, but mobile payment can lessen this negative effect. Mechanism analysis indicates that mobile payment is likely to ease liquidity constraints, increase social interaction, and stimulate entrepreneurship for rural households. We advised the government to promote mobile payment adoption in rural areas and enhance its design. Additionally, better medical resources should also be made available to rural households.

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“…For developing countries, financial inclusion and better access to financial services are crucial for improving the lives of their citizens [30]. Recent work in China suggests a positive association between mobile payment usage and happiness [33]. As such, ensuring more mobile banking and payment adoption is recommended strongly to policymakers of emerging countries [34].…”

Section: Introductionmentioning

confidence: 99%

Covid-19 and mobile payment in Belgium: Closing the digital divide or just for the young, social, and impulsive?

Hellemans

Willems²,

Brengman³

2022

Electron Commer Res

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Experts and industry reports agree that the COVID-19 crisis spurred the adoption of new retail technologies, like mobile payment. However, empirical academic evidence that compares their adoption and usage before, during, and after the crisis remains scarce. So far, academic mobile payment research has focussed almost entirely on the different building blocks of technological acceptance models, like perceived usefulness and ease of use, and their role in explaining intention to use. We need to learn more about the profile of the actual user. In this Belgian study, we investigate the evolution in mobile adoption based on survey data from 2019 to 2020 (2019: N = 897; 2020: N = 895). We examine differences in the profile of mobile payers in terms of their socio-demographics, retail, and social media behaviours. The pandemic triggered a clear uplift in mobile payment users between 2019 to 2020. Nonetheless, striking differences in socio-demographic profile and retail patronage remain. Our data shows that there is still inequality in adoption, related to age and social grade. We also observe a clear association between general impulse buying tendency and mobile payment. The link between internet/online shopping and mobile payment is firmly established. Finally, mobile adoption is related to the use of Instagram and Facebook. Consequences for retailers, researchers and public officers are further discussed.

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The effect of digital finance on Residents' happiness: the case of mobile payments in China

Cited by 18 publications

References 85 publications

Unraveling the influence and mechanism of digital inclusive finance on household financial substitution: evidence from China

Unraveling the influence and mechanism of digital inclusive finance on household financial substitution: evidence from China

Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China

Covid-19 and mobile payment in Belgium: Closing the digital divide or just for the young, social, and impulsive?

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