The Impact of Digital Economy on the Holding Rate of Household Financial Products

Wenjing Jiang

doi:10.54097/fkxjnx79

Authors

Wenjing Jiang School of Economics and Finance, Xi’an Jiaotong University, Xi’an, China

DOI:

https://doi.org/10.54097/fkxjnx79

Keywords:

Digital economy, financial products, household financial behavior, inclusive digital finance.

Abstract

In today’s digital era, traditional household financial management approaches are undergoing transformation. Against this backdrop, investigating the influence of digital economy on household financial products holding rate carries significant practical implications. This article is mainly about the effect of digital economy on household financial products holding rate, employing a two-way fixed-effects model incorporating provincial and temporal effects based on panel data from 29 provinces (municipalities, autonomous regions) in China in 2017 and 2019. The results demonstrate a significant positive effect, with the conclusions remaining valid after robustness tests. In western regions and areas where the level of digital economic development is relatively low, the impact turns out to be more pronounced, according to heterogeneity analysis. Instrumental variable tests further confirm the absence of significant endogeneity issues. The study reveals the independent effect of digital economy on household financial decision-making across macro and micro perspectives, providing a theoretical foundation and reference for the formulation of inclusive financial policies in digital finance and regional differentiated strategies.

Downloads

Download data is not yet available.

References

[1] Xie P, Zou C W. Research on the internet finance model. Journal Of Financial Research, 2012, (12): 11-22.

[2] Zhang X, Wan G H, Zhang J J, et al. Digital economy, inclusive finance, and inclusive growth. Economic Research Journal, 2019, 54(08): 71-86.

[3] Jiao J P. Application analysis and policy recommendations on the role of mobile payment in promoting inclusive finance development. China Business and Market, 2014, 28(07): 7-10.

[4] Xie X L, Shen Y, Zhang H X, et al. Can digital finance promote entrepreneurship? Evidence from China. China Economic Quarterly, 2018, 17(04): 1557-1580.

[5] Luo Y, Zeng L Y. Digital financial literacy and relative poverty. Economic Theory and Business Management, 2021, 41(12): 11-29.

[6] Zhang H D, Yin Z C. Financial knowledge and financial exclusion among Chinese households: an empirical study based on CHFS data. Journal Of Financial Research, 2016, (07): 80-95.

[7] Meng D F, Ji Y, Li D. The impact of financial literacy on family financial decision-making: gender differences. Research Of Finance and Education, 2020, 33(02): 12-24.

[8] Tang X B. Measuring the development level of China's digital economy and regional heterogeneity. Jianghan Tribune, 2025, (04): 28-37.

[9] Li J J, Peng Y C, Ma S C. Inclusive finance and economic development in China: multidimensional connotations and empirical analysis. Economic Research Journal, 2020, 55(04): 37-52.

[10] Fang Q, Xing R, Rao G. Research on the connotation of Shu embroidery culture and its promotion paths in the new era. Journal Of Education and Culture Studies, 2025.