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Digital financial inclusion, traditional finance system and household entrepreneurship

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  • Mao, Fengfu
  • Wang, Yuanfan
  • Zhu, Mengsi

Abstract

This study examines the impact of digital financial inclusion (DFI) on household entrepreneurship and the role of the traditional finance system (TFS). The results show that a 1% increase in DFI increases entrepreneurship by 0.264%. Improved willingness to borrow and financial literacy enhance DFI's effect. DFI and TFS have a willingness to borrow competitive relationship but a financial literacy synergistic relationship. The DFI-TFS relationship exhibits heterogeneity based on the rural–urban divide, bank types, and entrepreneurial motivations. These findings offer insights into the interplay between DFI and TFS in promoting household entrepreneurship.

Suggested Citation

  • Mao, Fengfu & Wang, Yuanfan & Zhu, Mengsi, 2023. "Digital financial inclusion, traditional finance system and household entrepreneurship," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:pacfin:v:80:y:2023:i:c:s0927538x23001427
    DOI: 10.1016/j.pacfin.2023.102076
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    More about this item

    Keywords

    Digital financial inclusion; Traditional finance system; Household entrepreneurship; Willingness to borrow; Financial literacy;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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