Taoism and digital inclusive finance

Area of Science:

• Socioeconomics
• Financial Technology
• Cultural Studies

Background:

• Understanding the societal impact of traditional philosophies on modern financial systems is crucial.
• Digital inclusive finance (DIF) plays a vital role in economic development and financial accessibility.
• The influence of Taoism on economic behavior and market dynamics remains underexplored.

Purpose of the Study:

• To systematically evaluate the impact of Taoism on the development of digital inclusive finance (DIF).
• To identify the mechanisms through which Taoist principles influence DIF.
• To provide insights for global investors on traditional Chinese culture and capital markets.

Main Methods:

• Theoretical analysis combined with empirical analysis using Chinese city-level data from 2011-2019.
• Measuring Taoism by the number of Taoist places of religious activity.
• Utilizing the Peking University Digital Inclusive Finance Index as the explained variable.

Main Results:

• Taoism's concept of inaction promotes fairness and rationality, fostering DIF development.
• Taoist dialectical wisdom enhances psychological capital, driving technological innovation and DIF growth.
• Taoism encourages Chinese enterprises to fulfill social responsibilities, supported by DIF advancement.

Conclusions:

• Taoism significantly contributes to the development of digital inclusive finance through its ethical and wisdom traditions.
• This research establishes a foundational understanding of 'Taoist economics' and its market implications.
• Findings offer valuable perspectives for investors interested in the intersection of culture, finance, and technology in China.