IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v11y2023i12p209-d1290463.html
   My bibliography  Save this article

Research on the Impact of Digital Inclusive Finance on the Financial Vulnerability of Aging Families

Author

Listed:
  • Xingqi Wang

    (Dong Fureng Institute of Economic and Social Development, Wuhan University, Wuhan 430072, China)

  • Zhenhua Mao

    (Dong Fureng Institute of Economic and Social Development, Wuhan University, Wuhan 430072, China
    Faculty of Business and Economics, The University of Hong Kong, Hong Kong 999077, China)

Abstract

In recent years, the issue of population aging has been a challenge for China’s economic and social development. Due to factors such as the imperfect pension security system, the financial vulnerability of families has been greatly impacted by population aging. Digital inclusive finance is a financial model that utilizes digital technology and innovative approaches to provide financial services to low-income groups and impoverished areas. With the rapid development of the concept of digital inclusive finance, an increasing number of households are beginning to use digital inclusive finance products. It is worth exploring whether this financial model can help alleviate the financial vulnerability of aging families. Therefore, it is of both theoretical and practical significance to study the role of digital inclusive finance in improving the financial vulnerability of aging families. This study assembled unbalanced panel data using both 2016 and 2018 China Household Tracking Survey (CFPS) data and the digital financial inclusion index. An empirical analysis was conducted using the ordered probit panel model. The research findings indicate the following: First, the increasing elderly population intensifies the financial vulnerability of families. Second, digital inclusive finance plays a significant role in improving the financial stability of aging families. Third, digital inclusive finance helps alleviate the impact of population aging on family financial vulnerability by mitigating credit constraints and increasing household income. Fourth, a heterogeneity analysis suggests that in female-headed households, the financial vulnerability caused by population aging is more severe, and the role of digital inclusive finance in improving family financial vulnerability is more prominent. Additionally, the purchase of commercial insurance can effectively alleviate the financial vulnerability of families caused by population aging.

Suggested Citation

  • Xingqi Wang & Zhenhua Mao, 2023. "Research on the Impact of Digital Inclusive Finance on the Financial Vulnerability of Aging Families," Risks, MDPI, vol. 11(12), pages 1-24, November.
    • Handle: RePEc:gam:jrisks:v:11:y:2023:i:12:p:209-:d:1290463
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/11/12/209/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/11/12/209/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
    2. Marianna Brunetti & Elena Giarda & Costanza Torricelli, 2016. "Is Financial Fragility a Matter of Illiquidity? An Appraisal for Italian Households," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 628-649, December.
    3. Abhijit V. Banerjee & Esther Duflo, 2014. "Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 572-607.
    4. Tullio Jappelli & Marco Pagano & Marco Di Maggio, 2013. "Households' indebtedness and financial fragility," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 23-46, January.
    5. Valentina Michelangeli & Mario Pietrunti, 2014. "A Microsimulation Model to evaluate Italian Households Financial Vulnerability," International Journal of Microsimulation, International Microsimulation Association, vol. 7(3), pages 53-79.
    6. repec:mul:jdp901:doi:10.12831/73631:y:2013:i:1:p:26-35 is not listed on IDEAS
    7. Annamaria Lusardi, 2011. "Americans' Financial Capability," NBER Working Papers 17103, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kartik Athreya & José Mustre-del-Río & Juan M Sánchez, 2019. "The Persistence of Financial Distress," The Review of Financial Studies, Society for Financial Studies, vol. 32(10), pages 3851-3883.
    2. Liaqat Ali & Muhammad Kamran Naqi Khan & Habib Ahmad, 2020. "Financial Fragility of Pakistani Household," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 572-590, September.
    3. Alessandra Bettocchi & Elena Giarda & Cristiana Moriconi & Federica Orsini & Rita Romeo, 2018. "Assessing and predicting financial vulnerability of Italian households: a micro-macro approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(3), pages 587-605, August.
    4. Liaqat Ali & Muhammad Kamran Naqi Khan & Habib Ahmad, 2020. "Education of the Head and Financial Vulnerability of Households: Evidence from a Household’s Survey Data in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 439-463, January.
    5. Grzegorz Wałęga & Agnieszka Wałęga, 2021. "Over-indebted Households in Poland: Classification Tree Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 561-584, January.
    6. Piotr Bialowolski & Dorota Weziak-Bialowolska, 2014. "The Index of Household Financial Condition, Combining Subjective and Objective Indicators: An Appraisal of Italian Households," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 365-385, August.
    7. Remya Tressa Jacob & Rudra Sensarma & Gopakumaran Nair, 2022. "Is rural household debt sustainable in a financially included region? Evidence from three districts of Kerala, India," Oxford Development Studies, Taylor & Francis Journals, vol. 50(4), pages 389-405, October.
    8. Yiing Jia Loke, 2017. "Financial Vulnerability of Working Adults in Malaysia," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(2), June.
    9. Ozili, Peterson Kitakogelu, 2021. "Financial inclusion-exclusion paradox: how banked adults become unbanked again," MPRA Paper 108494, University Library of Munich, Germany.
    10. Gathergood, John & Wylie, Daniel, 2018. "Why are some households so poorly insured?," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 1-12.
    11. Marco Brandolini & Federica Coroneo & Elena Giarda & Cristiana Moriconi & Sarah Grace See, 2022. "Differences in Perceptions of the Housing Cost Burden Among European Countries," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(4), pages 1-5.
    12. Zaimah Ramli & Henry Borromeo Anak Nyirop & Sarmila Md Sum & Abd Hair Awang, 2022. "The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth," Sustainability, MDPI, vol. 14(8), pages 1-13, April.
    13. Costanzo Ranci & Jason Beckfield & Laura Bernardi & Andrea Parma, 2021. "New Measures of Economic Insecurity Reveal its Expansion Into EU Middle Classes and Welfare States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 539-562, December.
    14. Terrence Kairiza & Philemon Kiprono & Vengesai Magadzire, 2017. "Gender differences in financial inclusion amongst entrepreneurs in Zimbabwe," Small Business Economics, Springer, vol. 48(1), pages 259-272, January.
    15. Massimo Baldini & Costanza Torricelli & Maria Cesira Urzì Brancati, 2018. "Family ties: Labor supply responses to cope with a household employment shock," Review of Economics of the Household, Springer, vol. 16(3), pages 809-832, September.
    16. Sylvain Catherine & Thomas Chaney & Zongbo Huang & David Sraer & David Thesmar, 2022. "Quantifying Reduced‐Form Evidence on Collateral Constraints," Journal of Finance, American Finance Association, vol. 77(4), pages 2143-2181, August.
    17. Alessandra Canepa & Fawaz Khaled, 2018. "Housing, Housing Finance and Credit Risk," IJFS, MDPI, vol. 6(2), pages 1-23, May.
    18. Jaume Ventura & Hans-Joachim Voth, 2015. "Debt into growth: How sovereign debt accelerated the first Industrial Revolution," Economics Working Papers 1483, Department of Economics and Business, Universitat Pompeu Fabra.
    19. Elisabetta Gualandri & Mario Noera, 2014. "Towards A Macroprudential Policy In The Eu: Main Issues," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 0049, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    20. Renate Strobl & Conny Wunsch, 2021. "Risky choices and solidarity: disentangling different behavioural channels," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1185-1214, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:11:y:2023:i:12:p:209-:d:1290463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.