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Does financial inclusion help alleviate household poverty and vulnerability in China?

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  • Youxue Jiang
  • Yangyi Liu

Abstract

This paper investigates the impact of financial Inclusion on household poverty and vulnerability by constructing a household financial inclusion index using the China Household Finance Survey 2015. It is found that financial Inclusion significantly reduces the probability of poverty and vulnerability of households and has a more significant impact on vulnerable groups such as rural and urban low-income people. Further, financial Inclusion has a more significant effect on poor families that do not receive government support for poverty alleviation and can complement co-insurance mechanisms to help families better cope with vulnerabilities caused by synergistic community shocks. Finally, promoting entrepreneurship and improving risk management capabilities are the main channels of financial Inclusion.

Suggested Citation

  • Youxue Jiang & Yangyi Liu, 2022. "Does financial inclusion help alleviate household poverty and vulnerability in China?," PLOS ONE, Public Library of Science, vol. 17(10), pages 1-21, October.
    • Handle: RePEc:plo:pone00:0275577
    DOI: 10.1371/journal.pone.0275577
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