The Impact of Digital Inclusive Finance on Local Economic Growth

Abstract

Under the background of the new era, digital inclusive finance has burst into new vitality and become an important driver of local economic growth. This paper empirically examines the impact of digital inclusive finance on local economic growth using 31 provincial panel data from 2013-2022. A two-way fixed effects model is built and the results indicate that digital inclusive finance significantly promotes local economic growth. After the robustness analysis, the conclusion is still valid.The analysis of heterogeneity reveals that digital financial inclusion has a significantly positive impact on per capita GDP in northeast China, while its impact on western and eastern China is relatively weak. In the eastern region, digital inclusive finance has the strongest positive effect on per capita disposable income, while in the central region, it is relatively weak. This paper proposes promoting the development of digital inclusive finance, and differentiated countermeasures should be implemented in various regions.