Citation

Ng, Tuan Hock and Lim, Ying Zhee and Lye, Chun Teck and Chan, Kar Hoong and Lim, Ying San (2025) Catalysing sustainable change: the role of digital finance in poverty alleviation in Asia. Quality & Quantity. ISSN 0033-5177

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Abstract

Poverty continues to be a major global issue, disproportionately affecting low-income populations. In recent years, the advent of digital finance has presented itself as a potential remedy, offering innovative ways to circumvent the traditional obstacles that have historically hindered low-income individuals’ access to essential financial services. Nevertheless, despite these opportunities, there remains a dearth of research examining whether increased usage of digital financial services contributes to poverty reduction. The main objective of this study is to bridge this research gap by conducting an empirical investigation into the relationship between digital finance usage and poverty levels in Asia spanning from 2014 to 2021. Analysis employing traditional regression models (ordinary least square, fixed-effect, and random-effect) indicates a positive relationship between digital finance usage and poverty reduction. To enhance the robustness of these findings, this study additionally employed quantile regression, instrumental variables regression, and ridge regression, which collectively reinforce the initial results. Overall, this study highlights that digital finance can be an effective way to reach low-income individuals with financial services that allow them to manage finances, build savings, and access credit. Building on these findings, this study suggests implementing policy measures to further promote the use of digital finance in poverty alleviation efforts.

Item Type:	Article
Uncontrolled Keywords:	Digital finance , poverty , sustainable development goals
Subjects:	H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance.
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	05 Mar 2025 07:17
Last Modified:	05 Mar 2025 07:17
URII:	http://shdl.mmu.edu.my/id/eprint/13563

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