Thinking Inside the Box: A Closer Look at Financial Inclusion and Household Income

By Quanda Zhang, A. Posso. 2019

182 citations recorded by the source corpus.

Abstract Using national representative household finance survey data covering more than 6200 Chinese households, we first construct a new multidimensional indicator for financial inclusion. Then we examine the effect of financial inclusion on household income. Our results elicit several findings. First, financial inclusion has a strong positive effect on household income. This effect can be found across all households with different levels of income. Second, low-income households are found to benefit more from financial inclusion than high and mid-level income ones. We argue that, in this sense, financial inclusion helps reduce income inequality.

Subfields: Accounting, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/6c3213490eab26ab25bd288246b66f26dc0ad7c0

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Citations in the corpus

A theory of financial inclusion and income inequality (2020, background): “While most cross-country studies have found a negative relationship between financial inclusion and income inequality (Honohan 2008; Mookerjee and Kalipioni 2010; Kim 2016; Neaime and Gaysset 2018; Turégano and Herrero 2018), it is unclear whether these findings hold for Asia, in general, and China,”
Effect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial Inclusion (2020, unknown): “Financial inclusion (FI), which increases individuals’ ownership of transactions and savings accounts, payment facilities, access to credit and receipt of remittances, enhances individual and household welfare through an improvement in entrepreneurial propensities, women’s empowerment, investment in”
Financial Inclusion and Economic GROWTH: An International Evidence (2019, background): “…Cihak et al. 2016; Garcia and Jose 2016, Morgan and Pontines 2017, Vo et al. 2019a), income inequality and economic growth (Kim, 2016; Kim, Yu and Hassan 2018; Park and Mercado 2015; Turegano and Herrero 2018) and even household levels (Lopez and Winkler 2017; Swamy 2014; Zhang and Posso 2017).”
Financial inclusion and poverty: a tale of forty-five thousand households (2020, methodology): “Such measures of financial inclusion have been used in the literature to capture a holistic perspective of financial inclusion (see, e.g. Zhang and Posso 2017).”
Fintech, financial inclusion and income inequality: a quantile regression approach (2020, background): “In contrast, Zhang and Posso (2019) find that in China lower-income households have benefited more from financial inclusion than high-and mid-level income ones.”