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Impact of fiscal spending, financial inclusion on financial stability

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  • Duan, Chengyonghui
  • Ni, Soh Wei

Abstract

The existing literature requires further comprehensive study on the relationship among fiscal expenditure, financial inclusion, and financial stability. This empirical study analyzes the impact of fiscal expenditure and financial inclusion on financial stability using panel data from 31 Chinese provinces (autonomous regions and municipalities directly under the central government) from 2011 to 2022. The study findings suggest that fiscal expenditures, financial inclusion, and technological development all improve financial stability. This study serves as a reference for designing fiscal expenditure measures and improving financial stability in the region.

Suggested Citation

  • Duan, Chengyonghui & Ni, Soh Wei, 2024. "Impact of fiscal spending, financial inclusion on financial stability," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012674
    DOI: 10.1016/j.frl.2024.106238
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    Cited by:

    1. Giraldo, Carlos & Giraldo, Iader & Gomez-Gonzalez, Jose E. & Uribe, Jorge M., 2025. "R&D Investment and Financial Stability," Documentos de trabajo 21327, FLAR.

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    More about this item

    Keywords

    Fiscal spending; Financial inclusion; Financial stability;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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