Does financial inclusion help alleviate household poverty and vulnerability in China?

Youxue Jiang; Yangyi Liu

doi:10.1371/journal.pone.0275577

Does financial inclusion help alleviate household poverty and vulnerability in China?

PLoS One. 2022 Oct 14;17(10):e0275577. doi: 10.1371/journal.pone.0275577. eCollection 2022.

Authors

Youxue Jiang^{1

2}, Yangyi Liu³

Affiliations

¹ School of Economics, Nanjing University, Nanjing, China.
² School of Finance, Jiangsu Vocational Institute of Commerce, Nanjing, China.
³ School of Economics, Si Chuan University, Chengdu, China.

Abstract

This paper investigates the impact of financial Inclusion on household poverty and vulnerability by constructing a household financial inclusion index using the China Household Finance Survey 2015. It is found that financial Inclusion significantly reduces the probability of poverty and vulnerability of households and has a more significant impact on vulnerable groups such as rural and urban low-income people. Further, financial Inclusion has a more significant effect on poor families that do not receive government support for poverty alleviation and can complement co-insurance mechanisms to help families better cope with vulnerabilities caused by synergistic community shocks. Finally, promoting entrepreneurship and improving risk management capabilities are the main channels of financial Inclusion.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

China
Family Characteristics*
Health Expenditures*
Humans
Poverty
Rural Population

Grants and funding

Leading Talents Training Program” of Jiangsu Vocational Institute of Commerce 2. General Project of Philosophy and Social Science Research in Jiangsu Universities in 2022: Research on Credit Evaluation of Small and Micro Enterprises in Counties from the Perspective of Digital Inclusive Finance.(No.:2022SJYB0787).