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Table 4.
Mechanism: Where do remittances come from?
From parentsFrom relatives & friends
Full sampleLow incomeHigh incomeFull sampleLow incomeHigh income
ΔlogY˜ijt 0.381** 0.460** 0.078 0.136 0.438* −0.249 
 (0.166) (0.186) (0.251) (0.239) (0.260) (0.505) 
logDFjt × ΔlogY˜ijt −0.074** −0.087** −0.017 −0.027 −0.086* 0.044 
 (0.033) (0.036) (0.050) (0.047) (0.051) (0.098) 
logBCjt × ΔlogY˜ijt 0.003 0.014 −0.028 0.012 0.033* −0.014 
 (0.010) (0.009) (0.018) (0.014) (0.017) (0.025) 
Controls 
Controls interactions HH FE, time FE 
Observations 2,560 1,118 1,442 2,560 1,118 1.442 
R2 0.73 0.70 0.75 0.65 0.65 0.66 
From parentsFrom relatives & friends
Full sampleLow incomeHigh incomeFull sampleLow incomeHigh income
ΔlogY˜ijt 0.381** 0.460** 0.078 0.136 0.438* −0.249 
 (0.166) (0.186) (0.251) (0.239) (0.260) (0.505) 
logDFjt × ΔlogY˜ijt −0.074** −0.087** −0.017 −0.027 −0.086* 0.044 
 (0.033) (0.036) (0.050) (0.047) (0.051) (0.098) 
logBCjt × ΔlogY˜ijt 0.003 0.014 −0.028 0.012 0.033* −0.014 
 (0.010) (0.009) (0.018) (0.014) (0.017) (0.025) 
Controls 
Controls interactions HH FE, time FE 
Observations 2,560 1,118 1,442 2,560 1,118 1.442 
R2 0.73 0.70 0.75 0.65 0.65 0.66 

Note:Dependent variable: whether household received transfer from parents and parents in law (columns 1–3), received transfer from friends and relatives (column 4–6). DFjt is the measure of digital inclusive finance, and BCjt is the ratio of bank credits to GDP in city region. Controls: household demographics, employment dummies, gender and age of the household head, the education level of family members, smartphone ownership, the use of financial instruments (bank card, participation in social insurance), and city level GDP growth. Control interactions are the interactions terms of controls with ΔlogY˜ijt. Robust standard errors reported in brackets are clustered at household level.

**statistically significant at the 5 percent level; *statistically significant at the 10 percent level.

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