China's economic growth and low-carbon development under the background of resource curse: A new perspective based on digital finance

Abstract

Does digital finance (DIF) in the digital age mitigate the economic challenges stemming from the resource curse and facilitate low-carbon development? This paper extends the theoretical framework of endogenous economic growth to investigate the interactive relationship among economic growth, low-carbon development, and the resource curse. Furthermore, it explores the pivotal role of DIF within this context. Subsequently, this paper employs Chinese provincial data from 2011 to 2020 to empirically examine the theoretical assumptions through econometric methods. The findings are as follows. First, DIF has the potential to stimulate economic growth, whereas resource endowment can impede it. Second, DIF significantly reduces carbon emission intensity (CEI); however, a high degree of resource endowment does not foster low-carbon development. Third, in the mechanism by which resource endowment influences economic growth, DIF exhibits a single threshold effect. When the DIF level surpasses 361.46, the negative relationship between resource endowment and economic growth shifts to a significant positive correlation. Regarding the mechanisms by which resource endowment impacts CEI, DIF shows a double-threshold effect. When DIF surpasses the second threshold, the significant positive impact of resource endowment on CEI becomes significantly negative. Fourth, DIF and resource endowment indirectly influence CEI through economic development. Fifth, the impact of DIF on CEI and the influence of resource endowment on economic growth are marked by resource endowment heterogeneity. DIF exhibits a double-threshold effect on the influence of resource endowment on economic growth in non-resource endowment regions. In resource-rich areas, as the DIF level rises, the significant positive effect of resource endowment on CEI intensifies. Conversely, in non-resource endowment regions, as the DIF level increases, the significant positive effect of resource endowment on CEI transforms into a significant negative effect.