Research On The Impact Of Digital Financial Inclusion On Economic Growth

The leap-forward improvement of digital technology has pointed out a new development path for inclusive finance.As a new financial format,digital finance is changing the traditional financial service model.The 2016 Hangzhou G20 Summit Global Partners of Financial Inclusion formally proposed digital financial inclusion and advanced principles in "Global Standards Development Institutions and Inclusive Finance-Evolving Landscape",marking the financial inclusion of countries around the world Upgraded to the age of digital finance inclusion.Compared with traditional financial inclusion that relies on physical banks,digital financial inclusion is not geographically restricted.Small and medium-sized enterprises and low-income people can obtain multiple financial products at low cost through the digital financial inclusive system through multiple channels,thereby increasing investment and consumption.Output and increased innovation ultimately drive economic growth.In recent years,research on digital financial inclusion has gradually increased,but research on the relationship between digital financial inclusion and economic growth is relatively scarce,and it is difficult to provide effective guidance for the practice of financial inclusion.Therefore,this article attempts to analyze the impact of digital financial inclusion on economic growth from both theoretical and empirical aspects.This will have important theoretical and practical significance for countries to build inclusive financial systems and use digital technology to promote financial inclusion to promote economic growth.The research in this article focuses on the following four aspects:(1)How to evaluate the development level of digital financial inclusion in a country or province?(2)Does digital financial inclusion affect economic growth?(3)What is the mechanism by which digital financial inclusion affects economic growth?Are there multiple conduction paths?(4)What measures can governments at all levels take to promote economic growth by increasing the level of digital financial inclusion?The foundation of digital financial inclusion research is firstly how to make scientific and reasonable measurement and evaluation of its development level.Based on the related research on inclusive finance combined with the characteristics of digital finance,this paper constructs two evaluation indicator systems.Using these two indicator systems,the digital inclusive financial development levels of 105 countries and 33 provinces(municipalities)of China were measured.On this basis,a comprehensive analysis of the impact of the development level of digital financial inclusion on economic growth from two perspectives"-time dimension and space dimension,"two levels"-transnational level and provincial level,and verify the mediating effect of credit constraints,entrepreneurship,investment,and urban-rural income gap between digital financial inclusion and economic growth.The innovative work and conclusions of the above studies are as follows:First,the digital financial inclusion evaluation index was constructed.The existing literature does not have an indicator system that can evaluate the level of transnational digital financial inclusion.The data source of the index system for evaluating digital financial inclusion in China is limited to Alipay,which does not cover traditional financial products and services.Based on the characteristics of digital financial inclusion,this research adds indicators that can reflect the characteristics of digital finance on the basis of the financial inclusion evaluation index system,and then builds digital data that can be used for cross-country comparison based on the public survey data of the World Bank and the International Monetary Fund.Inclusive Finance Level Evaluation Index System.Take China as an example,using economic and financial statistics to design a digital financial inclusion evaluation index system that includes both traditional financial and digital financial products and can be compared between the domestic regions of a country.It makes up for the deficiencies of existing research.Second,construct a theoretical model to deeply analyze the mechanism of digital financial inclusion affecting economic growth,and empirically analyze the intermediary role of credit constraints,entrepreneurship,investment,and urban-rural income gap in the process of digital financial inclusion affecting economic growth.At present,the academic research on the impact of digital financial inclusion on economic growth is still insufficient,especially the research on the impact mechanism and path needs to be in-depth.This research puts forward the three driving effects of digital financial inclusion influencing economic growth,and then based on the theory of endogenous growth,using the production function to construct a theoretical framework for digital financial inclusion influencing economic growth.This research analyzes the direct effects and indirect transmission paths of digital financial inclusion on economic growth,and uses the intermediary effect model to verify the utility of the four intermediary variables of credit constraints,entrepreneurship,investment,and urban-rural income gap through empirical analysis.It opens the black box of digital financial inclusion influencing economic growth.Third,the paper empirically from the cross-national level and the inter-provincial level,a region’s digital financial inclusion has a positive impact on the economic growth of the region,and it can also have an impact on the economic growth of surrounding areas,that is,there is a spatial spillover effect.The existing literature has no empirical research on the impact of digital financial inclusion in various countries on economic growth.After calculating the digital financial inclusion index of 105 countries,this study analyzed the impact of digital financial inclusion on the economic growth of the country and neighboring countries from the perspective of time and space.This study uses traditional quantitative analysis methods to analyze from the time dimension to empirically the increase in the level of digital financial inclusion in a region has a significant role in promoting economic growth in the region.This research empirically found that the impact is significant in high-income and middle-high-income countries,but not significant in low-and middle-income and low-income countries.Research at the provincial level found that digital financial inclusion in the eastern and western regions has a very significant impact on economic growth,while the central region is not.Using the spatial Dubin model,this study found that the increase in the level of digital financial inclusion in a region will have a spatial spillover effect on the economic growth of the surrounding regions,whether it is at the transnational or provincial level.Through the analysis of the direct and indirect effects and heterogeneity of the decomposition of the spatial Dubin model,it is found that the level of digital financial inclusion in a province in central and western my country has a significant positive spatial spillover effect on the economic growth of surrounding provinces,while the impact in the eastern region is not significant.This conclusion makes up for the deficiencies in the existing literature to analyze the impact of digital financial inclusion on economic growth at the national level.