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Can Digital Financial Inclusion Narrow the Urban-rural Income Disparity in Central Region of China?

Author

Listed:
  • Jing Liu
  • Chin-Hong Puah
  • Mohammad Affendy Arip
  • Meng-Chang Jong

Abstract

The purpose of this study is to investigate whether digital financial inclusion (DFI) can narrow the urban-countryside income disparity in central district of China. This study conducts an empirical analysis using the Digital Financial Inclusion Index and relevant income data from the central district of China for the period of 2011-2020. The research found that the digital credit level of DFI can significantly narrow the income disparity in the central district, but the depth of DFI usage has no significant impact on income level convergence in this area. Conversely, the total index, coverage breadth, digitization level, payment level, and insurance level of DFI can widen the income disparity in the central district. Based on these results, this paper proposes policy recommendations for narrowing the urban-countryside income disparity in this region through the evolution of DFI, which can also serve as a reference for other regions in China.

Suggested Citation

  • Jing Liu & Chin-Hong Puah & Mohammad Affendy Arip & Meng-Chang Jong, 2024. "Can Digital Financial Inclusion Narrow the Urban-rural Income Disparity in Central Region of China?," Business and Economic Research, Macrothink Institute, vol. 14(3), pages 108-122, December.
    • Handle: RePEc:mth:ber888:v:14:y:2024:i:3:p:108-122
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    References listed on IDEAS

    as
    1. Jing Liu & Chin-Hong Puah & Mohammad Affendy Arip & Meng-Chang Jong, 2023. "Impacts of Digital Financial Inclusion on Urban–Rural Income Disparity: A Comparative Research of the Eastern and Western Regions in China," Economies, MDPI, vol. 11(11), pages 1-14, November.
    2. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    3. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    4. Carla Fernandes & Maria Rosa Borges & Jorge Caiado, 2021. "The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach," Applied Economics, Taylor & Francis Journals, vol. 53(3), pages 400-409, January.
    5. Seemab Ahmad & Dilawar Khan & Róbert Magda, 2022. "Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    6. Meng-Chang Jong & Chin-Hong Puah & Mohammad Affendy Arip, 2024. "The Impact of Climate Change on Tourism Demand in China," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 482-488, May.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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