Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

The Structural Causes and Trend Evolution of Imbalance and Insufficiency of Development of Digital Inclusive Finance in China

Version 1 : Received: 23 May 2023 / Approved: 26 May 2023 / Online: 26 May 2023 (11:11:26 CEST)

A peer-reviewed article of this Preprint also exists.

Chen, M.; Chu, Q.; Zhang, T.; Li, Q.; Liu, J.; Yamaka, W. The Structural Causes and Trend Evolution of Imbalance and Insufficiency of Development of Digital Inclusive Finance in China. Sustainability 2023, 15, 10286. Chen, M.; Chu, Q.; Zhang, T.; Li, Q.; Liu, J.; Yamaka, W. The Structural Causes and Trend Evolution of Imbalance and Insufficiency of Development of Digital Inclusive Finance in China. Sustainability 2023, 15, 10286.

Abstract

In the paper, we measure the digital financial inclusion index of 31 provinces in China from 2011 to 2020 based on three dimensions: coverage breadth, depth of use and digitalization degree. By means of weighted Dagum Gini coefficient and quantile standardization, we explored the degree of imbalance and insufficiency of the development of digital inclusive finance in China and four major regions and its structural causes. Using Kernel density estimation method and Markov chain analysis method, we further investigates the evolution trend of imbalance and insufficiency. The study finds that (1) the Digital Inclusive Financial Index in China and the four major regions rise significantly, with the COVID-19 epidemic reducing its growth rate. Of these, the eastern region has the highest development level. (2) The imbalance level of digital inclusive finance development obviously has reduced. The level of imbalance is highest within the eastern region, and the development gap between the eastern and western regions is the widest. The imbalance of overall development is mainly due to the regional imbalance. The imbalance of coverage breadth and depth of use is the main structural cause of unbalanced development in the four major regions. There is a trend of bipolarization or multipolarization in China and the other three major regions, with the exception of the central region. (3) The western region is the least developed. The development shortcoming of digital inclusive finance in China and the four major regions is the breadth of coverage. There are "Club Convergence" and "Matthew Effect" in the eastern, central and western regions.

Keywords

digital inclusive finance; imbalance and insufficiency; weighted Dagum Gini coefficient; quantile standardization

Subject

Business, Economics and Management, Economics

Comments (0)

We encourage comments and feedback from a broad range of readers. See criteria for comments and our Diversity statement.

Leave a public comment
Send a private comment to the author(s)
* All users must log in before leaving a comment
Views 0
Downloads 0
Comments 0
Metrics 0


×
Alerts
Notify me about updates to this article or when a peer-reviewed version is published.
We use cookies on our website to ensure you get the best experience.
Read more about our cookies here.