A study of the impact of digital finance on the economic development of Latin American countries

This paper takes Latin American countries from 2012 to 2022 as a research sample, focusing on the impact of digital finance on the economic development of Latin American countries and its internal mechanism of action. By constructing a regression model from a macro perspective for in-depth analysis, the research results show that digital finance has a significant role in promoting the economic development of Latin American countries, but there is heterogeneity, the impact of digital finance on economic development is not significant at a low level of economic development, and digital finance can significantly improve the level of economic development at a high level of economic development. In terms of the global governance index, regulatory quality and political stability have a significant positive impact on the economic development of Latin American countries, and the interaction with digital finance can strengthen the promotion of digital finance on economic development; corruption control itself does not have a significant impact on economic development, but its interaction with digital finance can strengthen the promotion of digital finance on economic growth. In terms of global economic freedom, financial freedom, commercial freedom, and monetary freedom all have a significant positive impact on economic development in Latin American countries, and interacting with digital finance significantly strengthens digital finance's promotion of economic development. This study helps to understand the relationship between digital finance and the economic development of Latin American countries, and provides a reference for Latin American countries to formulate relevant policies to promote the synergistic development of digital finance and economy.