IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v43y2022i8p3973-3986.html
   My bibliography  Save this article

The impact and realization mechanism of financial inclusion on multidimensional poverty: Evidence from 426 national‐level impoverished counties in China

Author

Listed:
  • Guibo Liu
  • Luyang Gao
  • Feifei Wang

Abstract

We examine the impact of financial inclusion on multidimensional poverty in impoverished counties. The results show that (1) financial inclusion can directly alleviate the multidimensional poverty, but this effect is heterogeneous between different groups. (2) Agricultural industrialization is the realization mechanism of financial inclusion to alleviate multidimensional poverty. We recommend that financial inclusion not only need to solve the problem of credit exclusion faced by the poor but also need to improve the ability of the poor to convert credit funds into production capital and combine financial inclusion with agricultural industrialization in poverty areas.

Suggested Citation

  • Guibo Liu & Luyang Gao & Feifei Wang, 2022. "The impact and realization mechanism of financial inclusion on multidimensional poverty: Evidence from 426 national‐level impoverished counties in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3973-3986, December.
  • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:8:p:3973-3986
    DOI: 10.1002/mde.3640
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3640
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.3640?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alfred Hannig & Stefan Jansen, 2010. "Financial Inclusion and Financial Stability : Current Policy Issues," Finance Working Papers 23124, East Asian Bureau of Economic Research.
    2. Vighneswara Swamy & Dharani M, 2016. "Analyzing the agricultural value chain financing: approaches and tools in India," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(2), pages 211-232, July.
    3. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    4. Chakravarty, Satya R. & Pal, Rupayan, 2013. "Financial inclusion in India: An axiomatic approach," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 813-837.
    5. Roslina Kamaruddin & Amir Hussin Baharuddin, 2015. "The importance of good aquaculture practices in improving fish farmer’s income," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(12), pages 1090-1105, December.
    6. Philippe Aghion & Patrick Bolton, 1997. "A Theory of Trickle-Down Growth and Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 151-172.
    7. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    8. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    9. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
    10. Aussi Sayinzoga & Erwin H. Bulte & Robert Lensink, 2016. "Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda," Economic Journal, Royal Economic Society, vol. 126(594), pages 1571-1599, August.
    11. Hannig, Alfred & Jansen, Stefan, 2010. "Financial Inclusion and Financial Stability: Current Policy Issues," ADBI Working Papers 259, Asian Development Bank Institute.
    12. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    13. Miriam Bruhn & Inessa Love, 2014. "The Real Impact of Improved Access to Finance: Evidence from Mexico," Journal of Finance, American Finance Association, vol. 69(3), pages 1347-1376, June.
    14. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
    15. André Mialou & Goran Amidzic & Alexander Massara, 2017. "Assessing Countries’ Financial Inclusion Standing– A New Composite Index," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(8), pages 105-126, October.
    16. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    Full references (including those not matched with items on IDEAS)

    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. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    2. Ayyagari, Meghana & Beck, Thorsten & Hoseini, Mohammad, 2020. "Finance, law and poverty: Evidence from India," Journal of Corporate Finance, Elsevier, vol. 60(C).
    3. Seng, Kimty, 2019. "The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia," MPRA Paper 95726, University Library of Munich, Germany, revised 26 Aug 2019.
    4. Dar, Shafkat Shafi & Sahu, Sohini, 2022. "The effect of language on financial inclusion," Economic Modelling, Elsevier, vol. 106(C).
    5. Ahamed, M. Mostak & Mallick, Sushanta K., 2019. "Is financial inclusion good for bank stability? International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 403-427.
    6. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    7. D’Onofrio, Alexandra & Minetti, Raoul & Murro, Pierluigi, 2019. "Banking development, socioeconomic structure and income inequality," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 428-451.
    8. Manoel F. Meyer Bittencourt, 2006. "Financial Development and Inequality: Brazil 1985-99," Working Papers 26, ECINEQ, Society for the Study of Economic Inequality.
    9. Francis Osei‐Tutu & Laurent Weill, 2021. "Sex, language and financial inclusion," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(3), pages 369-403, July.
    10. Feghali, Khalil & Mora, Nada & Nassif, Pamela, 2021. "Financial inclusion, bank market structure, and financial stability: International evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 236-257.
    11. Pierluigi Murro & Valentina Peruzzi, 2018. "Cooperative banks and income inequality: Evidence from Italian provinces," Working Papers CASMEF 1804, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    12. Alexandra D'Onofrio & Pierluigi Murro, 2013. "Local banking development and income distribution across Italian provinces," Working Papers CASMEF 1307, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    13. Jing Zhang, 2020. "A Theoretical Framework of Financial Inclusion on Poverty Alleviation," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(5), pages 1-1.
    14. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    15. Raoul Minetti & Pierluigi Murro & Valentina Peruzzi, 2021. "Not All Banks Are Equal: Cooperative Banking And Income Inequality," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 420-440, January.
    16. Minetti, Raoul & Murro, Pierluigi & Peruzzi, Valentina, 2019. "One size does not fit all. Cooperative banking and income inequality," Working Papers 2019-10, Michigan State University, Department of Economics.
    17. Blau, Benjamin M., 2018. "Income inequality, poverty, and the liquidity of stock markets," Journal of Development Economics, Elsevier, vol. 130(C), pages 113-126.
    18. Shantanu Ghosh & Tarak Nath Sahu, 2021. "Financial inclusion and economic status of the states of India: An empirical evidence," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(2), July.
    19. Kabakova, Oksana & Plaksenkov, Evgeny, 2018. "Analysis of factors affecting financial inclusion: Ecosystem view," Journal of Business Research, Elsevier, vol. 89(C), pages 198-205.
    20. Zhuang, Juzhong & Gunatilake, Herath & Niimi, Yoko & Ehsan Khan, Muhammad & Jiang, Yi & Hasan, Rana & Khor, Niny & S. Lagman-Martin, Anneli & Bracey, Pamela & Huang, Biao, 2009. "Financial Sector Development, Economic Growth, and Poverty Reduction: A Literature Review," ADB Economics Working Paper Series 173, Asian Development Bank.

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:43:y:2022:i:8:p:3973-3986. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.