The Impact of Digital Inclusive Finance on Relative Poverty of Residents

Yilin Li; Ran Xu; Lihua Peng; Yichun Hou

doi:10.54254/2977-5701/5/2024033

Research Article

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Published on 23 May 2024

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Li,Y.;Xu,R.;Peng,L.;Hou,Y. (2024). The Impact of Digital Inclusive Finance on Relative Poverty of Residents. Journal of Applied Economics and Policy Studies,5,52-61.

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The Impact of Digital Inclusive Finance on Relative Poverty of Residents

Yilin Li *^,1, Ran Xu ², Lihua Peng ³, Yichun Hou ⁴

¹ Institute of South China Normal University
² Institute of South China Normal University
³ Institute of South China Normal University
⁴ Institute of South China Normal University

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2977-5701/5/2024033

Abstract

Based on the Beijing University Digital Inclusive Finance Index and the 2014-2018 China Household Finance Survey data, this paper empirically verifies the specific impact of digital inclusive finance on alleviating relative poverty among Chinese residents using a panel fixed effects model. The research results indicate that the level of development and coverage breadth of digital inclusive finance have a significantly positive impact on alleviating relative poverty among residents. This is because digital inclusive finance increases residents’ employment opportunities, raises employment income, and prompts the expansion of social capital. The study also finds regional and age group differences in the alleviation effect of digital inclusive finance on relative poverty among residents, with the alleviation effect in the western region higher than that in the eastern region and higher among non-elderly groups compared to elderly groups. Therefore, empowering finance with digital technology is an effective way to address relative poverty among residents.

Keywords

digital inclusive finance, relative poverty, panel fixed effects model, heterogeneity

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References

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Cite this article

Li,Y.;Xu,R.;Peng,L.;Hou,Y. (2024). The Impact of Digital Inclusive Finance on Relative Poverty of Residents. Journal of Applied Economics and Policy Studies,5,52-61.

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Journal：Journal of Applied Economics and Policy Studies

Volume number: Vol.5

ISSN：2977-5701(Print) / 2977-571X(Online)

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