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Digital credit and insurance: Improving economic well-being for rural households

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  • Zhang, Jinhua
  • Chen, Shuangyu
  • Goodell, John W.
  • Du, Anna Min

Abstract

The integration of digital technologies in credit and insurance services has important implications for the economic well-being of rural households. This paper utilizes cross-sectional data from a 2022 survey conducted with 476 rural households in China to explore the influence of digitally coordinated credit and insurance (DCCI) on economic well-being. Results indicate that DCCI significantly enhances both net incomes and farm incomes of rural households. Particularly, younger households, those engaged with digital technologies, and those facing high natural risks see greater benefits. Additionally, we find that reducing credit rationing and enhancing risk resilience are key mechanisms through which DCCI improves economic outcomes. The robustness of these results is confirmed through various analytical methods and measures. This study highlights the important role of digital transformation in the credit and insurance sectors for fostering economic growth in the rural sectors of emerging markets.

Suggested Citation

  • Zhang, Jinhua & Chen, Shuangyu & Goodell, John W. & Du, Anna Min, 2025. "Digital credit and insurance: Improving economic well-being for rural households," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000759
    DOI: 10.1016/j.iref.2025.103912
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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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