Details

Autor(en) / Beteiligte

• Yue, Pengpeng
• Korkmaz, Aslihan Gizem
• Yin, Zhichao
• Zhou, Haigang

Titel

The rise of digital finance: Financial inclusion or debt trap?

Ist Teil von

• Finance research letters, 2022-06, Vol.47, p.102604, Article 102604

Ort / Verlag

Elsevier Inc

Erscheinungsjahr

2022

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• 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. •The widespread use of digital finance increases credit market participation.•Increased access to credit markets stimulates household borrowing.•Credit market access changes marginal propensity to consume and elevates consumption.•Easier access to credit markets increases the risk of falling into a debt trap.