Can we have both fish and bear's paw:The commercial and public welfare nature of digital inclusive finance and its mechanism of action
The commercial objectives of digital inclusive finance focus on the profitability and sustainable development of financial institutions,while the public welfare objectives are dedicated to addressing poverty,reducing inequality,and enhancing social welfare.Based on the provincial panel data from China for 2011-2022,this study calculates the Theil index,employs fixed effects regression,mediation effect tests,threshold effect analysis,and a series of robustness checks to explore whether digital inclusive finance can achieve both fish and bear's paw,using instrumental variables to control for endogeneity issues.It investigates the impact and mechanisms under its dual objectives.The results indicate that in the western region,digital inclusive finance can indeed achieve both objectives simultaneously.A single threshold effect exists in the realization process of the public welfare objective,with a cliff-like slowdown in poverty reduction momentum.Thus,the commercial objectives can aid in the achievement of public welfare goals.With a heart for public good,we can compose a new chapter in finance and build a sustainable,diverse financial market system.By following the Chinese path to modernization with Chinese characteristics in finance,we can realize rural revitalization and common prosperity.
Digital financial inclusionTheil indexThreshold effectDual objectives
万方数据
维普
