Government Digital Policy Breaks the Mystery of “Limited Participation” in China's Home Finance Market

Abstract

Abstract This study examines whether household financial market participation at the urban dimension is impacted by the digital economy, which has important implications for promoting the shift from savings to investment among Chinese households and alleviating the long-standing issue of under-participation in Chinese household financial markets. We find that the digital economy can further make a contribution to household financial market participation rates by increasing the proportion of households with smart Internet access devices and household financial information attention. Additionally, the digital economy greatly influences urban household financial market participation rates and high financial literacy households' financial market participation rates. Classification codes: G38;D14;E65