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Digital inclusive finance, income structure and common prosperity

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  • Li, Xiaoxuan
  • Zhang, Shoufu

Abstract

This paper systematically explores the impact of digital inclusive finance on common prosperity and its underlying mechanisms, drawing on data from the China Household Finance Survey (CHFS) and the Peking University Digital Inclusive Finance Index. The findings reveal that digital inclusive finance significantly enhances household common prosperity by expanding financial service coverage and reducing access barriers and costs. Its mechanism primarily manifests in optimizing income structure, indirectly promoting common prosperity by increasing the proportion of wage income. Further heterogeneity analysis uncovers a regional gradient in the promoting effect of digital inclusive finance, with the strongest impact in the eastern region, followed by the central region, and the western region needing improvement, primarily influenced by differences in digital infrastructure and economic structure.

Suggested Citation

  • Li, Xiaoxuan & Zhang, Shoufu, 2025. "Digital inclusive finance, income structure and common prosperity," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325019622
    DOI: 10.1016/j.frl.2025.108708
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    References listed on IDEAS

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    1. Gao, Lu & Li, Bin, 2025. "Development of inclusive finance, digital infrastructure, and the urban–rural education gap," Finance Research Letters, Elsevier, vol. 86(PF).

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