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Digital payment penetration and regional consumption inequality

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  • Qin, Yang
  • Liu, Wei

Abstract

Deploying a comprehensive city-level dataset of China from 2010 to 2024, this study explores the impact of digital payment on regional consumption inequality. This paper provides sound evidence that levels of digital payment penetration substantially weaken regional consumption inequality. The effect is more evident among cities with lower financial inclusion and weaker banking competition. Our findings are effective under various sensitivity checks. Further analysis uncovers that access to personal loans and borrowing interest rates are two salient economic channels. In sum, this research complements the literature on digital economy and regional development, as well as offers crucial policy implications.

Suggested Citation

  • Qin, Yang & Liu, Wei, 2025. "Digital payment penetration and regional consumption inequality," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325013546
    DOI: 10.1016/j.frl.2025.108097
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    References listed on IDEAS

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