Quest for Social Inclusion on Digital Platform: Evidence of Gender-differentiated Effects on Micro and Small Businesses in China*

Sherry Tao Kong (), Xu Xiang () and Qiuhui Chen ()
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Sherry Tao Kong: Institute of Social Science Survey, Peking University Institute of Digital Finance, Peking University
Xu Xiang: Guanghua School of Management, Peking University
Qiuhui Chen: Institute of Social Science Survey, Peking University

Asian Economic Papers, 2024, vol. 23, issue 3, 171-199

Abstract: Amidst the global surge in digitalization, China emerges as a frontrunner, boasting a digital economy constituting 40 percent of its GDP and engaging over 1 billion users. Despite this, quantitative analyses on the socioeconomic impacts, particularly concerning gender inclusivity, remain sparse. This study addresses this gap by examining a sample of over 30,000 Chinese micro and small enterprises (MSEs) operating on a leading fintech platform. Our findings indicate a significant revenue boost for MSEs following platform registration, with pronounced benefits accruing to female entrepreneurs and marginalized populations. The adoption of digital payment systems and the availability of non-discriminatory credit are identified as pivotal mechanisms. These findings offer valuable insights into the transformative societal impact of digital platforms and mechanisms for fostering socioeconomic inclusivity.

Date: 2024
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