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Does FinTech Promote Entrepreneurship? Evidence from China
[L’adoption des Fintech favorise-t-elle l’entreprenariat ? Le cas de la Chine]

Author

Listed:
  • Alraqeb Zeynep
  • Knaack Peter
  • Macaire Camille

Abstract

The rise of financial technology (FinTech) in China over the past decade has changed the traditional financial landscape in the country. We provide evidence on the role of digital financial services in promoting self-employment. We construct an indicator of relative FinTech adoption at the provincial-level in China. We show that the digitalization of financial services at an aggregated level is associated with a higher share of self-employed individuals in the total population. In rural areas, coverage breadth of digitalized financial services drives the positive impact on the share of self-employment, while in urban areas, digitalized insurance services appear to be more influential. We also show that the shift to self-employment is not at the expense of employment in private firms in the country. L'essor des technologies financières (FinTech) en Chine au cours de la dernière décennie a modifié le paysage financier traditionnel du pays. Nous étudions la relation entre l’adoption de ces services et la part de l’entreprenariat dans la population totale. Nous construisons un indicateur de l'adoption relative des FinTech au niveau provincial dans le pays, et montrons que la numérisation des services financiers est associée à une part plus élevée d’autoentrepreneurs dans la population totale. Dans les zones rurales, l'étendue de la couverture des services financiers numérisés est à l'origine de cet impact positif, tandis que dans les zones urbaines, les services d'assurance numérisés semblent avoir plus d'influence. Nous montrons également que le passage à l'emploi indépendant ne se fait pas au détriment de l'emploi au sein des entreprises privées dans le pays.

Suggested Citation

  • Alraqeb Zeynep & Knaack Peter & Macaire Camille, 2022. "Does FinTech Promote Entrepreneurship? Evidence from China [L’adoption des Fintech favorise-t-elle l’entreprenariat ? Le cas de la Chine]," Working papers 895, Banque de France.
    • Handle: RePEc:bfr:banfra:895
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    References listed on IDEAS

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    More about this item

    Keywords

    Fintech; Financial Inclusion; Digitalization; China; Entrepreneurship;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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