The impact of formal financial inclusion on informal financial intermediation and cash preference: Evidence from Africa

Alhassan, Abidin; Li, Leon; Reddy, Krishna

doi:10.2139/ssrn.3221660

Cited by 2 publications

(2 citation statements)

References 27 publications

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“…The development and application of digital technology dramatically improve the current income of residents. Its effect on the income improvement of urban residents is more prominent and has a heterogeneous impact on the income improvement of different groups in urban and rural areas [ 25 ]. Found that the implementation and development of regional digital finance can significantly increase the income level of residents [ 26 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Has digital finance widened the income gap?

Yao

2022

PLoS ONE

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Using the statistical data of 280 prefectural-level cities in China from 2011 to 2020, this paper empirically tests the relationship between digital finance and residents’ income in a linear and nonlinear model based on the G-J model theory, respectively. The study aims to discuss and analyze the impact of digital finance development on income distribution in the context of the current situation of digital finance development in China and further explore how to make digital finance better regulate the income distribution of residents. The innovation of this paper is to use two nonlinear methods to verify the Kuznets effect and threshold characteristics of digital financial development affecting the income distribution of residents based on linear analysis and explore the relationship between n digital economic development the current income gap more comprehensively. The study shows a Kuznets effect of digital finance development on the income distribution of Chinese residents. Thus, most regions in China have not yet crossed the inflection point of the bell-shaped curve, and the income gap within areas will continue to increase with the development of digital finance. By constructing a threshold model, it is found that the positive effect of digital finance on income disparity may initially increase with the increase of regional economic level. Still, when the regional economic development reaches a higher stage, the effect will tend to fall back. As a result, the negative impact of digital finance development on residents’ income distribution will be significantly reduced at that time.

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Section: Literature Reviewmentioning

confidence: 99%

Has digital finance widened the income gap?

Yao

2022

PLoS ONE

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“…The fact that cash is by far the most reliable payment and store-of-value option in most developing countries is supported by rich and growing evidence. Some of the specific topics addressed by the literature are the conditions explaining the use of cash for domestic remittances, wages, and government payments (CGAP, 2012;Demirguc-Kunt et al, 2018;Alhassan et al, 2019), access to basic accounts (Dupas et al, 2018), access to mobile payments and related cash-in/cash-out services (Jack and Suri, 2014;Evans and Pirchio, 2015); the development of digital government transfer schemes (Zimmerman et al, 2014), adequate regulatory frameworks (Classens and Rojas-Suárez, 2016), and the persistent effects of former legal and institutional systems (Beck et al 2003;Grosjean 2011).…”

Section: 11mentioning

confidence: 99%