Download pdf
The Role of Digital Finance and Financial Inclusion in Economic Growth
- 1 School of Finance, Central University of Finance and Economics, Beijing, 102206, China
* Author to whom correspondence should be addressed.
Abstract
Digital finance and financial inclusion have already become significant components of many countries’ financial system. Starting from the early 21th century, the researchers focus on building the developed digital finance and financial inclusion system. This paper concludes the development of digital finance and financial inclusion and then summarizes the three significant effects on small, micro enterprises and common residents according to the existing study, emphasizing the importance of the digital finance and financial inclusion to economic growth. The impacts include that digital finance can increase the efficiency of financial market by improving the success rate of two-way selection of both parties in the financial market, in addition to increasing the consumption quality of residents. This paper also points out that digital finance and financial inclusion will bring new risks to the financial market, and subsequent researchers still need to study how to make digital finance more stable and less risky.
Keywords
Digital Finance, Financial Inclusion, Economic Growth
[1]. Gabor, D., & Brooks, S. (2020). The digital revolution in financial inclusion: International development in the fintech era. In Material Cultures of Financialisation (pp. 69-82). Routledge.
[2]. Ahmad, M., Majeed, A., Khan, M. A., Sohaib, M., & Shehzad, K. (2021). Digital financial inclusion and economic growth: Provincial data analysis of China. China Economic Journal.
[3]. Financial frontier dialogue. (2018). Peking University HSBC Financial Research Institute, (Issue 4). Retrieved from https://english.phbs.pku.edu.cn/uploadfile/2021/0513/20210513094223250.pdf
[4]. Ozili, P. K. (2023). Digital finance research and developments around the world: A literature review. International Journal of Business Forecasting and Marketing Intelligence, 8(1), 35-51.
[5]. Durai, T., & Stella, G. (2019). Digital finance and its impact on financial inclusion. Journal of Emerging Technologies and Innovative Research, 6(1), 122-127.
[6]. Al-Smadi, M. O. (2023). Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries. Borsa Istanbul Review, 23(2), 464-472.
[7]. Xu, Z., Liu, B., & Li, Y. (2024). Digital financial inclusion and credit rationing of small and micro enterprises: Based on the perspective of loan technology. Southern Finance, 1-16.
[8]. Lu, M. (2023). By the end of August, the balance of loans for small and micro enterprises nationwide was 67.7 trillion yuan. Sina Finance. Retrieved from https://www.jingjiribao.cn/static/detail.jsp?id=483983
[9]. Cheng, X. (2024). Systematic governance mechanism of the algorithm black box of digital financial platforms under the goal of becoming a financial power. Journal of Hohai University (Philosophy and Social Sciences), 26(02), 107-120.
[10]. Liang, H., Li, S., & Wang, Y. (2024). Digital finance, monetary policy, and systemic financial risk. Social Sciences Digest, (03), 8-10.
[11]. Jiang, H., Zhou, Y., & Li, C. (2024). Research on the impact of digital financial inclusion on the quality of consumption of Chinese residents. Commercial Economic Research, (08), 46-51.
Cite this article
Qing,Y. (2024). The Role of Digital Finance and Financial Inclusion in Economic Growth. Advances in Economics, Management and Political Sciences,110,39-44.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of ICEMGD 2024 Workshop: Decoupling Corporate Finance Implications of Firm Climate Action
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).