The Impact of Digitalization Level on Households' Participation in Internet Financial Activities - Based on the Data from CHFS (2019)

DOI: https://doi.org/10.62517/jse.202511606

Author(s)

Yinqi Lin

Affiliation(s)

Tianjin University of Finance and Economcis, Tianjin, China

Abstract

This article is based on data from the China Household Finance Survey (CHFS) in 2019. After data cleaning, a total of **9,155 households** were included in the sample. It explores the mechanism by which the development of digitalization impacts household participation in internet finance from three aspects: individual, family, and regional distribution. Using a logit model for baseline regression, and probit and OLS models for heterogeneity analysis and robustness checks, the empirical results indicate that the improvement in digitalization significantly positively affects household participation in internet financial activities. Specifically, for every one standard deviation increase in digitalization, the probability of households holding internet financial products increases by 1.4% to 1.8%, demonstrating a positive influence on household engagement in internet finance. Regarding the effect of digitalization, the improvement in digitalization levels in urban areas and economically developed regions such as the eastern and central parts of China has a more pronounced effect on promoting household participation in internet financial activities. Accordingly, targeted suggestions are proposed: accelerate digital infrastructure development in underdeveloped regions; strengthen financial education and internet accessibility; develop age-friendly financial products; and establish and improve the regulatory and enforcement systems for internet finance.

Keywords

CHFS; Household Finance; Internet Finance; Digitalization; Logit Model

References

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