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The spatial effects of digital inclusive finance and traditional finance on the income of the migrant population: A comparative analysis of 243 cities in China

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  • Yang, Ronghai
  • Li, Yuqin
  • Li, Yabo

Abstract

This paper uses data from the China Migrants Dynamic Survey (CMDS), covering 243 cities across China from 2011 to 2018, to examine the differential impact of digital inclusive finance and traditional finance on the income of the migrant population. The findings reveal that digital inclusive finance significantly bolsters the income of the migrant population, whereas traditional finance appears less effective in delivering substantial financial support. The study further suggests that a synergistic approach, harnessing both digital and traditional financial services, could yield a markedly positive impact on migrant income, with notable spatial spillover effects. Furthermore, there is significant regional heterogeneity in how digital inclusive finance and traditional finance influence the income of the migrant population. On one hand, the economic impact of digital inclusive finance is more pronounced in southern regions, while the synergistic effect between digital inclusive finance and traditional finance is more robust in northern regions. On the other hand, coastal regions, despite with higher levels of digital inclusive financial services, exhibit less significant spillover effects compared to inland regions. This study provides strong evidence that digital inclusive finance and traditional finance can significantly optimize income distribution and enhance public welfare.

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  • Yang, Ronghai & Li, Yuqin & Li, Yabo, 2025. "The spatial effects of digital inclusive finance and traditional finance on the income of the migrant population: A comparative analysis of 243 cities in China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s1057521925001413
    DOI: 10.1016/j.irfa.2025.104054
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