The impact of digital finance on household participation in risky financial markets: Evidence-based study from China

Ye, Yun; Yong-jian, PU; Xiong, Ailun

doi:10.1371/journal.pone.0265606

Cited by 17 publications

(13 citation statements)

References 44 publications

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“…It can also advance the competitiveness of agricultural products and the export rate of agricultural products to increase farmers’ agricultural income by, for example, establishing the traceability of green production and green certificates. As financial products become more accessible, the effective utilization rate of idle funds increases, and farmers’ non-agricultural income also increases [ 16 ].…”

Section: Instructionmentioning

confidence: 99%

Does Digital Inclusive Finance Effectively Promote Agricultural Green Development?—A Case Study of China

Hua

Gu²,

Peng³

et al. 2022

IJERPH

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Agricultural green development is increasingly being discussed in sustainable development. This paper constructs agricultural green development from four dimensions: resource savings, environmental protection, ecological conservation, and quality industrialization. We apply the entropy-weighted Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method to measure agricultural green development and employ a panel dataset of provinces in China from 2011–2019. Then, the dynamic spatial Durbin model is adopted to estimate the spatial effect of digital inclusive finance on agricultural green development. The main findings are as follows: (1) digital inclusive finance effectively promotes agricultural green development, and the promotional effect shows temporary and spatial spillover; (2) regional heterogeneity exists in the spatial effect in the short and long term; and (3) education, digital infrastructure, and traditional finance are important factors influencing this spatial effect of digital inclusive finance on agricultural green development.

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Section: Instructionmentioning

confidence: 99%

Does Digital Inclusive Finance Effectively Promote Agricultural Green Development?—A Case Study of China

Hua

Gu²,

Peng³

et al. 2022

IJERPH

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“…The Internet is a primary carrier of information and has improved the efficiency of its dissemination. DIF promotes household participation in financial market activities, by facilitating access to financial information and investment channel coverage (Ye et al, 2022). Consumers rely on the Internet to effectively control and utilize DIF, maximizing their search, comparison and integration of investment information.…”

Section: Research Hypothesismentioning

confidence: 99%

“…Second, based on the life cycle theory, families need to formulate family expenditure strategies with their actual stage of life. Household financial investment requires a higher threshold and knowledge requirement than traditional savings and consumption (Ye et al, 2022;Zhou and Liang, 2018). Third, this study finds that 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 on financial investment and consumption proposed by Bogan (2008), Novak et al (2000), Beal and Delpachitra (2003) and Allen and Gale (2004).…”

Section: Theoretical Implicationmentioning

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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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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“…In fact, there will be a lot of problems when GS algorithm is applied to the matching problem of industry-university- The specific cyclic process of the algorithm model can be deduced from the preference ranking list, as shown in Tables 4 and 5: namely, whether the industry side first expresses the intention to cooperate with the academic and research side or the academic and research side first expresses the intention to cooperate with the academic and research side, the stable matching state can be obtained [17].…”

Section: Matching Process Of Gs Algorithm Under Full Matchingmentioning

confidence: 99%

Evolutionary Game Analysis of Industry-University-Research Cooperative Innovation in Digital Media Enterprise Cluster Based on GS Algorithm

Duan

Sun

Wang

et al. 2022

Wireless Communications and Mobile Computing

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In order to study all the advantages and disadvantages of digital media enterprises, technological innovation can only be completed through cooperation. A kind of industry-university-research cooperative innovation evolutionary game method based on GS algorithm is proposed for digital media enterprise clusters. This method analyzes the evolutionary game theory of innovation and puts forward the evolutionary stability strategy of cooperative innovation between enterprises and research institutions. The results show that decreasing V is beneficial for the evolutionary game to approach the equilibrium point (1,1); that is, the greater the cost of independent innovation is compared with collaborative innovation, the stronger the willingness of both sides of the game to collaborative innovation. Enterprises and scientific research institutions are two different subjects with different interests. If they want to complete innovation cooperation, they need to formulate a perfect set of rules so that both sides of the game can carry out cooperative innovation according to the principles, so as to achieve the goal of cooperation.

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The impact of digital finance on household participation in risky financial markets: Evidence-based study from China

Cited by 17 publications

References 44 publications

Does Digital Inclusive Finance Effectively Promote Agricultural Green Development?—A Case Study of China

Does Digital Inclusive Finance Effectively Promote Agricultural Green Development?—A Case Study of China

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

Evolutionary Game Analysis of Industry-University-Research Cooperative Innovation in Digital Media Enterprise Cluster Based on GS Algorithm

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