Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238566 
Year of Publication: 
2020
Series/Report no.: 
ADBI Working Paper Series No. 1209
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
Using the 2015 and 2017 waves of the China Household Finance Survey (CHFS), we measured financial literacy and study its relationship to households' demand for digital finance. We found that a majority of households in the People's Republic of China possess limited financial literacy. The low levels of financial sophistication are responsible for the low usage of digital finance among Chinese households. Further, the positive impact of financial literacy on digital finance is more pronounced for wealthy, high-income, and young households, women, and households in urban and coastal areas. Our results are robust to using a variety of specifications and controlling for endogeneity, peer effects, cognition, and voluntary self-exclusion.
Subjects: 
financial literacy
digital finance
household finance
CHFS
People's Republic of China
JEL: 
D10
G11
D91
D83
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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