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Digital financial inclusion and tourism development

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  • Luo, Haohan
  • Wang, Haijun
  • Wu, Ying

Abstract

Digital financial inclusion is reshaping the development of the Chinese economy. This paper examines the impact of digital financial inclusion on tourism development. Using a large sample of 281 Chinese prefecture-level cities for the 2011–2018 period, we find that digital financial inclusion is positively associated with tourism development. The results are consistent in various robustness tests. Mechanism tests show that digital financial inclusion promotes tourism development by enhancing individuals' financial market participation, promoting entrepreneurship activities in the tourism industry, and increasing individuals’ tourism consumption. Further analysis shows that the positive association with digital financial inclusion is more prominent in non-eastern regions and in cities with rich travel resources. Our study suggests that digital financial inclusion is an important factor that promotes tourism development.

Suggested Citation

  • Luo, Haohan & Wang, Haijun & Wu, Ying, 2024. "Digital financial inclusion and tourism development," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 207-219.
    • Handle: RePEc:eee:reveco:v:90:y:2024:i:c:p:207-219
    DOI: 10.1016/j.iref.2023.12.001
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    More about this item

    Keywords

    Digital financial inclusion; Tourism development; Financial market participation; Entrepreneurship activities;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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