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Evaluating the effects of digital finance on urban poverty

Author

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  • Duan, Zhimin
  • Yuan, Fangjie
  • Tian, Zhengjie

Abstract

This study examines the impact of digital financial services development on urban poverty. Utilizing the vicious cycle of poverty theory, we established a multidimensional poverty measurement index to assess the poverty status of urban households and propose strategies for leveraging digital finance to address urban poverty. Through empirical research based on a comprehensive dataset from China covering the period from 2012 to 2020, we evaluated the moderating effect of digital financial growth on urban poverty. Our analysis, which categorized poor urban households into five groups—laid-off workers, unemployed individuals, migrants, the elderly, and disabled persons—revealed that only the unemployed and migrants experience significant benefits from digital financial development. Lastly, we explore the underlying mechanisms and emphasize the role of investment, financing, and entrepreneurship in utilizing digital finance for poverty alleviation.

Suggested Citation

  • Duan, Zhimin & Yuan, Fangjie & Tian, Zhengjie, 2024. "Evaluating the effects of digital finance on urban poverty," Socio-Economic Planning Sciences, Elsevier, vol. 96(C).
  • Handle: RePEc:eee:soceps:v:96:y:2024:i:c:s0038012124002994
    DOI: 10.1016/j.seps.2024.102099
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    More about this item

    Keywords

    Digital finance; Multidimensional poverty; Urban poverty;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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