Digital financial inclusion, traditional finance system and household entrepreneurship

Fengfu Mao, Yuanfan Wang and Mengsi Zhu

Pacific-Basin Finance Journal, 2023, vol. 80, issue C

Abstract: This study examines the impact of digital financial inclusion (DFI) on household entrepreneurship and the role of the traditional finance system (TFS). The results show that a 1% increase in DFI increases entrepreneurship by 0.264%. Improved willingness to borrow and financial literacy enhance DFI's effect. DFI and TFS have a willingness to borrow competitive relationship but a financial literacy synergistic relationship. The DFI-TFS relationship exhibits heterogeneity based on the rural–urban divide, bank types, and entrepreneurial motivations. These findings offer insights into the interplay between DFI and TFS in promoting household entrepreneurship.

Keywords: Digital financial inclusion; Traditional finance system; Household entrepreneurship; Willingness to borrow; Financial literacy (search for similar items in EconPapers)
JEL-codes: D14 G21 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:80:y:2023:i:c:s0927538x23001427

DOI: 10.1016/j.pacfin.2023.102076

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