Impacts of ICT and digital finance on poverty and income inequality: a sub-national study from India

Simontini Das and Amrita Chatterjee

Information Technology for Development, 2023, vol. 29, issue 2-3, 378-405

Abstract: The present paper explores both the direct and indirect impact of ICT diffusion through the channel of digital finance on two development indicators such as poverty and income inequality at the sub-national level in India. Ordered probit estimation confirms that ICT diffusion directly reduces the persistence of poverty in both urban and rural areas. The application of ICT in the banking sector in the form of digital finance has a positive role in rural-urban poverty reduction. ICT has no direct impact on income inequality, though financial inclusion has a positive influence on both rural and urban inequality. ICT diffusion in the banking sector dampens the positive impact of financial inclusion on urban inequality with no impact on rural inequality. Proposed policy prescription can be strengthening of ICT infrastructure with wider and uniform spread of digital finance among rural and urban population so that more people can take advantage of it.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/02681102.2022.2151556 (text/html)
Access to full text is restricted to subscribers.

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:taf:titdxx:v:29:y:2023:i:2-3:p:378-405

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/titd20

DOI: 10.1080/02681102.2022.2151556

Access Statistics for this article

Information Technology for Development is currently edited by Sajda Qureshi

More articles in Information Technology for Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().