Inclusive finance and urban household consumption: Evidence from a Quasi-natural Experiment in China

Rongjun Zhou and Qian Fu

Finance Research Letters, 2025, vol. 76, issue C

Abstract: Since the introduction of inclusive finance in 2005, traditional financial systems have progressively reduced financial exclusion, allowing disadvantaged groups access to financial services, thereby fostering economic growth and income equality. This study analyzes Chinese prefecture-level cities’ data spanning 2003–2020 from, using a difference-in-differences approach to evaluate the impact of inclusive finance policies on urban household consumption. Results indicate that inclusive finance policies significantly increase urban household consumption levels by raising per capita disposable income and alleviating financing constraints. In addition, the positive impact of inclusive finance policies on household consumption is more pronounced in cities with higher levels of infrastructure development.

Keywords: Inclusive finance; Financial service; Difference-in-differences; Household consumption (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325001849
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325001849

DOI: 10.1016/j.frl.2025.106920

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().