IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i4p1194-d141195.html
   My bibliography  Save this article

Inclusive Finance, Human Capital and Regional Economic Growth in China

Author

Listed:
  • Guangyou Zhou

    (School of Economics, Fudan University, Shanghai 200433, China
    These authors contributed equally to this work.)

  • Kuangxiong Gong

    (School of Economics, Fudan University, Shanghai 200433, China
    Chongqing Dajiang Sub-branch, Agricultural Bank of China, Chongqing 401320, China
    These authors contributed equally to this work.)

  • Sumei Luo

    (School of Finance, Shanghai University of Finance and Economics, Shanghai 200433, China
    These authors contributed equally to this work.)

  • Guohu Xu

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
    These authors contributed equally to this work.)

Abstract

Inclusive finance is an important financial development strategy in the world. The promoting effect of the human capital on economic growth has also gained theoretical and empirical support. This paper attempts to deeply examine the interaction among inclusive finance, human capital and regional economic growth as well as their mutual influence mechanism. To the end, data of 31 provinces and cities from 2005 to 2015 were chosen to build a corresponding panel data template. Meanwhile, the fixed effect model was adopted for an empirical test. Results suggest the following. (1) Inclusive finance and human capital can exert a significantly positive promoting effect on regional economic growth. The influence of inclusive finance on regional economic growth is more obvious, while the nonlinear influence of human capital is more significant; (2) Inclusive finance is observed to have a significantly negative influence on economic growth of China’s central region (mainly referring to eight provinces, including Shanxi). The positive promoting effect of inclusive finance on economic growth of China’s west region (mainly referring to 12 provinces and cities, including Chongqing) is found to be the most significant. Differently, human capital exerts the most significantly promoting effect on China’s central region. The economic development level differs in different regions of China. As an increasing number of talent resources gather in the central and western region of China and the financial system is built in the two regions, resource optimization has become a necessity, which is the linchpin to China’s sustainable economic development.

Suggested Citation

  • Guangyou Zhou & Kuangxiong Gong & Sumei Luo & Guohu Xu, 2018. "Inclusive Finance, Human Capital and Regional Economic Growth in China," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1194-:d:141195
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/4/1194/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/4/1194/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lin, T. -C., 2003. "Education, technical progress, and economic growth: the case of Taiwan," Economics of Education Review, Elsevier, vol. 22(2), pages 213-220, April.
    2. Andreas Savvides & Theofanis P. Mamuneas & Thanasis Stengos, 2006. "Economic development and the return to human capital: a smooth coefficient semiparametric approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 111-132.
    3. Lin, Tin-Chun, 2004. "The role of higher education in economic development: an empirical study of Taiwan case," Journal of Asian Economics, Elsevier, vol. 15(2), pages 355-371, April.
    4. Anzoategui, Diego & Demirgüç-Kunt, Asli & Martínez Pería, María Soledad, 2014. "Remittances and Financial Inclusion: Evidence from El Salvador," World Development, Elsevier, vol. 54(C), pages 338-349.
    5. Xiuhua Wang & Jian Guan, 2017. "Financial inclusion: measurement, spatial effects and influencing factors," Applied Economics, Taylor & Francis Journals, vol. 49(18), pages 1751-1762, April.
    6. Donghyun Park & Kwanho Shin, 2017. "Economic Growth, Financial Development, and Income Inequality," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(12), pages 2794-2825, December.
    7. Beck, Thorsten & Demirguc-Kunt, Asli & Martinez Peria, Maria Soledad, 2007. "Reaching out: Access to and use of banking services across countries," Journal of Financial Economics, Elsevier, vol. 85(1), pages 234-266, July.
    8. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    9. repec:cup:jfinqa:v:46:y:2011:i:06:p:1545-1580_00 is not listed on IDEAS
    10. Pascaline Dupas & Jonathan Robinson, 2013. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," American Economic Review, American Economic Association, vol. 103(4), pages 1138-1171, June.
    11. Tiago V. V. Cavalcanti & Chryssi Giannitsarou, 2017. "Growth and Human Capital: A Network Approach," Economic Journal, Royal Economic Society, vol. 127(603), pages 1279-1317, August.
    12. Su, Yaqin & Liu, Zhiqiang, 2016. "The impact of foreign direct investment and human capital on economic growth: Evidence from Chinese cities," China Economic Review, Elsevier, vol. 37(C), pages 97-109.
    13. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    14. Wang, Wen & Li, Qiang & Lien, Donald, 2016. "Human capital, political capital, and off-farm occupational choices in rural China," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 412-422.
    15. Daniela Gabor & Sally Brooks, 2017. "The digital revolution in financial inclusion: international development in the fintech era," New Political Economy, Taylor & Francis Journals, vol. 22(4), pages 423-436, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng-Wen Chen & Yuan Feng & Wei Wang, 2018. "Impacts of Financial Inclusion on Non-Performing Loans of Commercial Banks: Evidence from China," Sustainability, MDPI, vol. 10(9), pages 1-28, August.
    2. Guo‐Hua Cao & Jing Zhang, 2022. "The entrepreneurial ecosystem of inclusive finance and entrepreneurship: A theoretical and empirical test in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1547-1568, January.
    3. Lu Liu & Yuxin Meng & Desheng Wu & Qiying Ran & Jianhong Cao & Zilian Liu, 2023. "Impact of haze pollution and human capital on economic resilience: evidence from prefecture-level cities in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13429-13449, November.
    4. Yang Jingyi & Guo Xiaoyang & Zhang Xiuwu, 2024. "Analysis of the Effect of Digital Financial Inclusion in Promoting Inclusive Growth: Mechanism and Statistical Verification," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-18.
    5. Wang, Xiong & Yang, Wanping & Ren, Xiaohang & Lu, Zudi, 2023. "Can financial inclusion affect energy poverty in China? Evidence from a spatial econometric analysis," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 255-269.
    6. Dong, Kangyin & Taghizadeh-Hesary, Farhad & Zhao, Jun, 2022. "How inclusive financial development eradicates energy poverty in China? The role of technological innovation," Energy Economics, Elsevier, vol. 109(C).
    7. Xiaoqing Ai & Hongda Zhang & Keyu Guo & Fubin Shi, 2022. "Does Regional Innovation Environment Have an Impact on the Gathering of Technological Talent? An Empirical Study Based on 31 Provinces in China," Sustainability, MDPI, vol. 14(23), pages 1-17, November.
    8. Mazelis, Lev S. & Krasko , Andrey A. & Krasova, Elena V., 2021. "Distribution of financial resources by areas of investments in the human capital of the region," Economic Consultant, Roman I. Ostapenko, vol. 36(4), pages 4-16.
    9. Ronny Correa-Quezada & José Álvarez-García & María De la Cruz Del Río-Rama & Claudia Patricia Maldonado-Erazo, 2018. "Role of Creative Industries as a Regional Growth Factor," Sustainability, MDPI, vol. 10(5), pages 1-14, May.
    10. Yanlin Yang & Chenyu Fu, 2019. "Inclusive Financial Development and Multidimensional Poverty Reduction: An Empirical Assessment from Rural China," Sustainability, MDPI, vol. 11(7), pages 1-17, March.
    11. Mazelis, Lev S. & Krasko, Andrey A. & Krasova, Elena V., 2019. "Dynamic optimization model of financial resources distribution for accelerated promotion to the regional human capital development," Economic Consultant, Roman I. Ostapenko, vol. 28(4), pages 21-30.
    12. Dana Kiseľáková & Beáta Šofranková & Miroslav Gombár & Veronika Čabinová & Erika Onuferová, 2019. "Competitiveness and Its Impact on Sustainability, Business Environment, and Human Development of EU (28) Countries in terms of Global Multi-Criteria Indices," Sustainability, MDPI, vol. 11(12), pages 1-25, June.
    13. Yating Peng & Bo Liu & Mengliang Zhou, 2022. "Sustainable Livelihoods in Rural Areas under the Shock of Climate Change: Evidence from China Labor-Force Dynamic Survey," Sustainability, MDPI, vol. 14(12), pages 1-21, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Yang & Goodell, John W. & Dong, Qingli & Wang, Yong & Abedin, Mohammad Zoynul, 2022. "Overcoming spatial stratification of fintech inclusion: Inferences from across Chinese provinces to guide policy makers," International Review of Financial Analysis, Elsevier, vol. 84(C).
    2. Bao Zhu & Shiting Zhai & Jing He, 2018. "Is the Development of China’s Financial Inclusion Sustainable? Evidence from a Perspective of Balance," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    3. Amit Pandey & Ravi Kiran & Rakesh Kumar Sharma, 2023. "Investigating the Determinants of Financial Inclusion in BRICS Economies: Panel Data Analysis Using Fixed-Effect and Cross-Section Random Effect," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    4. de Quidt, Jonathan & Fetzer, Thiemo & Ghatak, Maitreesh, 2018. "Commercialization and the decline of joint liability microcredit," Journal of Development Economics, Elsevier, vol. 134(C), pages 209-225.
    5. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.
    6. Fromentin, Vincent & Leon, Florian, 2019. "Remittances and credit in developed and developing countries: A dynamic panel analysis," Research in International Business and Finance, Elsevier, vol. 48(C), pages 310-320.
    7. Mohamed Abdouli & Anis Omri, 2021. "Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 788-810, June.
    8. Abba Yadou Barnabé & Ningaye Paul & Bangake Chrysost, 2021. "Do remittances spur financial inclusion in Africa? a multi-dimensional approach," Economics Bulletin, AccessEcon, vol. 41(2), pages 328-341.
    9. Yong Bian & Xiqian Wang & Qin Zhang, 2023. "How Does China's Household Portfolio Selection Vary with Financial Inclusion?," Papers 2311.01206, arXiv.org.
    10. João Paulo Coelho Ribeiro & Fábio Duarte & Ana Paula Matias Gama, 2022. "Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-35, December.
    11. Anil Shrestha & Makoto Kakinaka, 2022. "Remittance Inflows and Energy Transition of the Residential Sector in Developing Countries," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    12. Guillermo Boitano & Deybi Franco Abanto, 2020. "Challenges of financial inclusion policies in Peru," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 12(1), pages 89-117, June.
    13. Dircio-Palacios-Macedo, María del Carmen & Cruz-García, Paula & Hernández-Trillo, Fausto & Tortosa-Ausina, Emili, 2023. "Constructing a financial inclusion index for Mexican municipalities," Finance Research Letters, Elsevier, vol. 52(C).
    14. Tram, Thi Xuan Huong & Lai, Tien Dinh & Nguyen, Thi Truc Huong, 2023. "Constructing a composite financial inclusion index for developing economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 257-265.
    15. Zhian Zhiow Augustinne Wong & Ramez Abubakr Badeeb & Abey P. Philip, 2023. "Financial Inclusion, Poverty, and Income Inequality in ASEAN Countries: Does Financial Innovation Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 471-503, September.
    16. Thorsten Beck & Haki Pamuk & Burak R. Uras, 2017. "Entrepreneurial Saving Practices and Reinvestment: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1205-1228, November.
    17. Charalampos Agiropoulos & Michael L. Polemis & Michael Siopsis & Sotiris Karkalakos, 2022. "Revisiting the finance‐growth nexus: A socioeconomic approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2762-2783, July.
    18. Jelson Serafim, 2021. "Financial deepening, Stock market, Inequality and Poverty: Some African Evidence," Working Papers REM 2021/0177, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    19. Iqbal, Kazi & Roy, Paritosh K. & Alam, Shamsul, 2020. "The impact of banking services on poverty: Evidence from sub-district level for Bangladesh," Journal of Asian Economics, Elsevier, vol. 66(C).
    20. Liu, Guanchun & Zhang, Chengsi, 2020. "Does financial structure matter for economic growth in China," China Economic Review, Elsevier, vol. 61(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1194-:d:141195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.