Digital Inclusive Finance, Entrepreneurial Vitality and Common Prosperity: Evidence From China's Provinces

The contribution of digital technology to driving the high-quality development of inclusive finance has become a key focus in advancing common prosperity, especially against the backdrop of China's evolving economic environment. Using panel data from 30 provinces in China spanning the years 2011 to 2022, this study investigates the positive impact of digital inclusive finance on the achievement of common prosperity. The results demonstrate that digital inclusive finance significantly boosts common prosperity by stimulating the residents' enthusiasm for entrepreneurship. Specifically, opportunity entrepreneurship plays a more substantial mediating role in this process compared to necessity entrepreneurship. Furthermore, the effectiveness of digital inclusive finance in fostering the realization of common prosperity would be diminished by excessive financial regulation. The study also highlights that the positive effects of digital inclusive finance are more significant in regions with advanced digital infrastructure and favourable policy environments, as well as the east and middle of China. These results further underscore the importance of targeted policies that leverage digital finance to drive common prosperity at both the regional and national levels.