arXiv Open Access 2022

The rise of digital finance: Financial inclusion or debt trap

Pengpeng Yue Aslihan Gizem Korkmaz Zhichao Yin Haigang Zhou

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Abstrak

This study focuses on the impact of digital finance on households. While digital finance has brought financial inclusion, it has also increased the risk of households falling into a debt trap. We provide evidence that supports this notion and explain the channel through which digital finance increases the likelihood of financial distress. Our results show that the widespread use of digital finance increases credit market participation. The broadened access to credit markets increases household consumption by changing the marginal propensity to consume. However, the easier access to credit markets also increases the risk of households falling into a debt trap.

Topik & Kata Kunci

econ.GN

Penulis (4)

Pengpeng Yue

Aslihan Gizem Korkmaz

Zhichao Yin

Haigang Zhou

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APA MLA BibTeX

Yue, P., Korkmaz, A.G., Yin, Z., Zhou, H. (2022). The rise of digital finance: Financial inclusion or debt trap. https://arxiv.org/abs/2201.09221

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Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓