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Digital financial inclusion, traditional finance system and household entrepreneurship

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  • Mao, Fengfu
  • Wang, Yuanfan
  • Zhu, Mengsi

Abstract

This study examines the impact of digital financial inclusion (DFI) on household entrepreneurship and the role of the traditional finance system (TFS). The results show that a 1% increase in DFI increases entrepreneurship by 0.264%. Improved willingness to borrow and financial literacy enhance DFI's effect. DFI and TFS have a willingness to borrow competitive relationship but a financial literacy synergistic relationship. The DFI-TFS relationship exhibits heterogeneity based on the rural–urban divide, bank types, and entrepreneurial motivations. These findings offer insights into the interplay between DFI and TFS in promoting household entrepreneurship.

Suggested Citation

  • Mao, Fengfu & Wang, Yuanfan & Zhu, Mengsi, 2023. "Digital financial inclusion, traditional finance system and household entrepreneurship," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:pacfin:v:80:y:2023:i:c:s0927538x23001427
    DOI: 10.1016/j.pacfin.2023.102076
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    Cited by:

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    8. Leiru Wei & Jingxian Di & Qian Zhou, 2025. "What is the role of digital divide between digital inclusive finance and common prosperity? Evidence from 245 cities in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    9. Vaishali Kamboj & Dipasha Sharma, 2025. "Mapping the landscape of digital financial inclusion and proposing integrative framework: trends, influential works, and future directions," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    10. Bansal, Sanchita & Kumar, Satish & Ali, Searat & Singh, Shifali & Nangia, Priya & Bamel, Umesh, 2025. "Harnessing digital finance for sustainability: An integrative review and research agenda," Research in International Business and Finance, Elsevier, vol. 74(C).
    11. Shahriar, Abu Zafar M. & Alam, Quamrul, 2024. "Violence against women, innate preferences and financial inclusion," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    12. Louis Logogye & Michael Adusei & Kwasi Poku & Godfred Aawaar, 2025. "Financial inclusion—entrepreneurship nexus: evidence from a threshold analysis," Journal of Business Economics, Springer, vol. 95(4), pages 587-616, May.
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    14. Yun Shen & Yanxi Jing & Yiyue Liu, 2025. "Unveiling the Spatial Coupling Dynamics and Coordination Mechanisms Between Digital Inclusive Finance and Rural Industrial Integration Development," Land, MDPI, vol. 14(3), pages 1-25, February.
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    16. Li, Bin & Pan, Ya, 2025. "Digital inclusive finance and rural entrepreneurial survival: The moderating role of digital and financial literacy," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1119-1136.

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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