Author ORCID Identifier
Lulu Zhao: 0000-0001-6416-6171
Jingjing Ye: 0000-0002-6420-5609
Abstract
In the era of accelerating digital transformation, digital capability is increasingly recognized as a critical determinant of household economic outcomes. Yet whether digitalization promotes inclusive growth or amplifies existing inequalities remains empirically unresolved. Based on data from the 2015 and 2017 China Household Finance Survey (CHFS), this study examines how household digital capability affects inclusive growth and investigates the mechanisms through which this effect occurs. The results show that digital capability significantly increases household income, narrows income inequality, and improves the equity of income distribution. Among its three dimensions, digital tool use has the strongest positive effect, underscoring the importance of practical digital application. Mechanism analysis indicates that digital capability promotes inclusive growth mainly by reducing social capital gaps and easing credit constraints. Heterogeneity analysis further shows that digital inclusive finance and digital infrastructure strengthen these effects, while the inequality-reducing effect is more pronounced among older households. However, persistent gaps in digital capability, especially in digital usage, weaken its inclusive potential. Additional analysis confirms that stronger digital capability significantly lowers households’ risk of falling into poverty, suggesting a poverty-alleviating effect.
Recommended Citation
Zhao, L.,
&
Ye, J.
(In press).
Digital Inclusion for Whom? Investigating the Role of Digital Capability in Income Growth and Redistribution.
Information Technology for Development.
Available at:
https://aisel.aisnet.org/itd/vol32/iss3/24