Title: Exploring the drivers of digital financial inclusion: an empirical analysis based on interprovincial panel data in China

Authors: Xiaoling Song; Yage Jing; Kadeerya Akebaerjiang

Addresses: Business School, Beijing Language and Culture University, Xueyuan Road, Haidian District, Beijing 100083, China ' Business School, Beijing Language and Culture University, Xueyuan Road, Haidian District, Beijing 100083, China ' Business School, Beijing Language and Culture University, Xueyuan Road, Haidian District, Beijing 100083, China

Abstract: With rapid technological innovation, digital financial inclusion offers the advantages of wide geographical coverage, high availability, low cost and strong sustainability. Developing countries are increasingly making significant achievements toward greater financial inclusion. This study empirically examined the factors driving the development of digital inclusion finance in China, a major developing country. We performed co-integrated panel regressions on national and regional data from 31 provinces in China from 2011 to 2018. We found that the level of economic development, government intervention, internet penetration, and credit market development can significantly affect the level of digital financial inclusion in China; however, the degree of influence varies in different provinces. We propose that developing countries should strengthen their policy support and supervision of digital financial inclusion while encouraging the development of their economies and motivate the innovation and upgrading of the domestic financial industry for vigorous development of digital financial inclusion.

Keywords: developing countries; digital financial inclusion; DFI; co-integrated panel regression; financial innovation; China.

DOI: 10.1504/IJTLID.2020.112229

International Journal of Technological Learning, Innovation and Development, 2020 Vol.12 No.3, pp.208 - 223

Received: 16 Jun 2020
Accepted: 24 Jun 2020
Published online: 05 Jan 2021 *

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