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The Impact of Fintech on Poverty Reduction: Evidence from China

Author

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  • Isaac Appiah-Otoo

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China
    Center for West African Studies, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Na Song

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

Abstract

Ending poverty in all its forms by 2030 remains the first agenda of Sustainable Development Goals set by the United Nations in 2015. Motivated by this agenda, this study examined the direct and indirect effect of financial technology (fintech) and its sub-measures of third-party payment and credit on poverty measured by household per capita consumption. We used a panel of 31 provinces in China from 2011 to 2017. The results indicated that fintech and these sub-measures reduce poverty in China. The results further showed that fintech complements economic growth and financial development to reduce poverty in China.

Suggested Citation

  • Isaac Appiah-Otoo & Na Song, 2021. "The Impact of Fintech on Poverty Reduction: Evidence from China," Sustainability, MDPI, vol. 13(9), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5225-:d:550229
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    Cited by:

    1. Acheampong, Alex O. & Appiah-Otoo, Isaac & Dzator, Janet & Agyemang, Kwabena Koforobour, 2021. "Remittances, financial development and poverty reduction in Sub-Saharan Africa: Implications for post-COVID-19 macroeconomic policies," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1365-1387.
    2. Gao, Xinxiang & Yu, Jiawen & Pertheban, Thillai Raja & Sukumaran, Sheiladevi, 2024. "Do fintech readiness, digital trade, and mineral resources rents contribute to economic growth: Exploring the role of environmental policy stringency," Resources Policy, Elsevier, vol. 93(C).
    3. Na Song & Isaac Appiah-Otoo, 2022. "The Impact of Fintech on Economic Growth: Evidence from China," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    4. Xiaonan Qin & Yue Wang & Lina Liu & Wenhua Yuan & Jianchun Li, 2022. "Research on the Development Potential of China’s Pro-Poor Tourism Industry Based on Geographical Nature Evaluation," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    5. Abebe Gule Girma & Fariz Huseynov, 2023. "The Causal Relationship between FinTech, Financial Inclusion, and Income Inequality in African Economies," JRFM, MDPI, vol. 17(1), pages 1-15, December.
    6. Xiaofan Zuo & Zhisheng Hong, 2022. "The Impact of Internet Use on Perception of the Poor–Rich Gap: Empirical Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    7. Melain Modeste Senou & Denis Acclassato Houensou, 2024. "From expanding financial services to tackling poverty in West African Economic and Monetary Union: The accelerating role of mobile money," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1707-1737, April.
    8. Leng, Chunyu & Wei, Siao-Yun & Al-Abyadh, Mohammed Hasan Ali & Halteh, Khaled & Bauetdinov, Majit & Le, Luan Thanh & Alzoubi, Haitham M., 2024. "An empirical assessment of the effect of natural resources and financial technologies on sustainable development in resource abundant developing countries: Evidence using MMQR estimation," Resources Policy, Elsevier, vol. 89(C).
    9. Fatkhurrohman, 2021. "Access to Fintech and Poverty : Evidence from the Arrival of 4G Networks in Indonesia," Warwick-Monash Economics Student Papers 24, Warwick Monash Economics Student Papers.
    10. Dzator, Janet & Acheampong, Alex O. & Appiah-Otoo, Isaac & Dzator, Michael, 2023. "Leveraging digital technology for development: Does ICT contribute to poverty reduction?," Telecommunications Policy, Elsevier, vol. 47(4).
    11. Luiz Antonio Joia & Joaquim Pedro Vasconcelos Cordeiro, 2021. "Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    12. Mengdi Wang & Xiaobing Peng, 2023. "How to Develop Sustainably after Poverty Alleviation in Poverty-Stricken Areas under Paired Assistance: A Quantitative Assessment Framework Based on System Dynamics Model," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    13. Huwei Wen & Yutong Liu, 2023. "Can Fintech Lead to the Collaborative Reduction in Pollution Discharges and Carbon Emissions?," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    14. Appiah-Otoo, Isaac & Chen, Xudong & Song, Na & Dumor, Koffi, 2022. "Financial development, institutional improvement, poverty reduction: The multiple challenges in West Africa," Journal of Policy Modeling, Elsevier, vol. 44(6), pages 1296-1312.
    15. Orkun Bayram & Isilay Talay & Mete Feridun, 2022. "Can Fintech Promote Sustainable Finance? Policy Lessons from the Case of Turkey," Sustainability, MDPI, vol. 14(19), pages 1-25, September.

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