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How can digital financial inclusion reduces relative poverty? An empirical analysis based on China household finance survey

Author

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  • Tao, Zhe
  • Wang, Xican
  • Li, Jing
  • Wei, Xiaobei

Abstract

This study identifies the role and mechanism of digital inclusive finance in reducing relative poverty by selecting 2017, 2019, and 2021 China Household Finance Surveys (CHFS) as the research sample. The study finds that digital inclusive financial development can significantly reduce the likelihood of households falling into relative poverty; digital inclusive financial development can alleviate the formal credit constraints to which households are subjected, increase the allocation of risky financial assets to households, and support the entrepreneurial behaviors of rural households, thereby reducing the likelihood of households falling into relative poverty.

Suggested Citation

  • Tao, Zhe & Wang, Xican & Li, Jing & Wei, Xiaobei, 2023. "How can digital financial inclusion reduces relative poverty? An empirical analysis based on China household finance survey," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s154461232300942x
    DOI: 10.1016/j.frl.2023.104570
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    5. Lanxin Sun & Zhenting Lin & Baowei Lai, 2025. "Examining the Impact of Digital Inclusive Finance on Urban and Rural Consumption Patterns: Insights from China Household Finance Survey in 11 Coastal Regions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12809-12842, September.
    6. Bukari, Chei & Acheampong, Alex O., 2025. "Mitigating the impact of climate change on poverty in Africa: the moderating role of financial inclusion," Finance Research Letters, Elsevier, vol. 84(C).
    7. Liu, Liang & Ju, Zhen, 2025. "Digital finance and retirement planning: The role of information cost reduction and trust enhancement channels," Economic Modelling, Elsevier, vol. 144(C).
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    9. Qiong Liu & Mingwei Wang & Qian Wang & Dawei Wei, 2025. "Mitigating Rural Multidimensional Poverty Through Digital Inclusive Finance: Real Improvement and Psychological Empowerment," Agriculture, MDPI, vol. 15(9), pages 1-20, April.
    10. Choudhary, Priya & Ghosh, Chinmoy & Thenmozhi, M, 2025. "Impact of fintech and financial inclusion on sustainable development goals: Evidence from cross country analysis," Finance Research Letters, Elsevier, vol. 72(C).
    11. Zhao, Qiao & Wang, Wangqing, 2024. "Impact of digital financial tools on intermediate goods: Synergies between external funding and internal R&D investment," Finance Research Letters, Elsevier, vol. 67(PB).
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    15. Wang, Huilin & Liu, Jiliang, 2025. "Aging of population, digital financial inclusion, and public education expenditure," Finance Research Letters, Elsevier, vol. 73(C).

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