Research Article
Regional Economic Growth and Poverty Reduction Effects: Evidence from Digital Inclusive Finance in China
@INPROCEEDINGS{10.4108/eai.7-7-2023.2338037, author={Haiyan Wang and Qing Chang and Sirong Shang and Lu Chen}, title={Regional Economic Growth and Poverty Reduction Effects: Evidence from Digital Inclusive Finance in China}, proceedings={Proceedings of the 2nd International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2023, July 7--9, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={FFIT}, year={2023}, month={10}, keywords={digital inclusive finance; poverty reduction effects; panel fixed effects models; threshold effects}, doi={10.4108/eai.7-7-2023.2338037} }- Haiyan Wang
Qing Chang
Sirong Shang
Lu Chen
Year: 2023
Regional Economic Growth and Poverty Reduction Effects: Evidence from Digital Inclusive Finance in China
FFIT
EAI
DOI: 10.4108/eai.7-7-2023.2338037
Abstract
Based on Peking University Digital Inclusive Financing Index from 2011 to 2019 and provincial panel data, this paper constructs a measurement system to analyze the impact of digital Inclusive Financing development on China's economic growth. Then, combined with panel fixed effect model and threshold effect model, the impact of digital Inclusive Financing development on China's economic poverty alleviation is calculated. The results show that China can achieve regional poverty reduction through the growth of digital Inclusive Financing, and there is a nonlinear relationship between them. After the test of robustness and endogeneity, this conclusion is still valid. In addition, the impact of urbanization rate on digital inclusive financial growth and regional poverty reduction has passed single threshold test and double threshold test, which shows that the impact mechanism of urbanization rate in China varies from region to region. Specifically, East China shows a stronger poverty alleviation effect than Northeast China and Central and Western China. Finally, the paper puts forward practical policy suggestions to maximize the role of inclusive digital finance in poverty eradication.