Research On The Impact Of Digital Inclusive Finance On China's Regional Economic Growth

Inclusive finance gives disadvantaged groups as well as small and micro enterprises more opportunities to access financial services,thereby contributing to economic growth.There is no doubt that the development of inclusive finance has achieved certain progress,but some factors such as high unit management costs and imperfect credit reporting system restrict its further development.Therefore,the concept of digital inclusive finance came into being,and its development has benefited from the rapid development of communication technology,big data technology and cloud computing technology.Digital inclusive finance not only further enhances the coverage and depth of inclusive finance,but also significantly reduces the cost of financial services and improves the efficiency of financial institutions in" providing financial services.However,due to the relatively short birth time of digital inclusive finance,its corresponding regulatory system has not been fully established yet.Some financial service providers are emerging participants,who have insufficient knowledge of financial risks,lack of strong internal control and excellent business qualities,which lays hidden dangers for the security and continuity of financial services.Some financial service audiences have relatively low education level and lack corresponding financial knowledge and digital knowledge,so it is difficult for them to fully participate in digital inclusive financial activities.In addition,the relatively backward digital infrastructure construction in some regions is difficult to provide strong technical support for the development of digital inclusive finance.Therefore,whether the development of digital inclusive finance contributes to China's regional economic growth needs further empirical testing.At present,most of the research on digital inclusive finance focuses on the qualitative analysis and index compilation of digital inclusive finance,and there are not enough literatures that carry out relevant quantitative analysis.In view of this,combining with Beijing University's Digital Inclusive Financial Index,this paper explores the impact of digital inclusive finance on China's regional economic growth on the basis of previous analysis.First,based on the definition of relevant concepts,this article summarizes its characteristics and advantages by combing existing literature as well as the current status of digital inclusive financial development in China and the actual situation of regional economic growth,therefor sorts out its impact on regional economic growth and corresponding theoretical mechanism.Second,this paper selects the panel data of 286 cities in China from 2011 to 2016,citing the China Digital Inclusive Financial Index released by the Internet Finance Research Center of Peking University as well as using the Douglas production function and per capita GDP of each province as a regional economic growth agent variables in order to set up its empirical models.Empirical tests of the impact of digital inclusive finance on China 's overall economy and regional economic growth from the national level,the eastern,central and western regions are conducted as well as threshold regression model is used to further explore whether there are non-linear differences in the effect of digital inclusive finance on regional economic growth.At last,based on the three dimensions of coverage breadth,use depth and digital level,the impact of digital Inclusive Finance on China's regional economic growth is further explored.The main conclusions of this paper are as follows:first,at the national level and the eastern,Western and eastern regional level,digital inclusive finance contributes to regional economic growth,and there is a significant positive correlation between them,the extent of its promotion to regional economic growth is different due to regional heterogeneity;second,the threshold regression results show that the development of digital inclusive finance has a non-linear difference on the impact of per capita GDP,from the national level and the eastern,central and regional level.The impact of digital Inclusive Finance on per capita GDP growth can be divided into two stages.However,at the national level and the central regional level,digital inclusive finance has greatly promoted per capita GDP growth in the first stage and in the second stage the promotion range has declined,while in the eastern region,the promotion range of the two stages has gradually increased;third,from the empirical analysis results of three dimensions as coverage breadth,usage depth and digital level,the finding are as follows:1.Digital inclusive Finance has significantly promoted regional economic growth at the national level and the eastern regional level through the threshold reduction mechanism,but not in the central and western regions,which may be related to the relatively backward development level of digital Inclusive Finance in the central and western regions;2.Digital inclusive finance has slowed down the geographical exclusion at the national level and the eastern,Western and eastern regional level through the mitigation of exclusion effect This may be related to the exclusion of financial products and services in the central and western regions of China and the eastern regions.In view of the above conclusions,this paper puts forward corresponding countermeasures and suggestions in the aspects of strengthening the construction of digital inclusive financial infrastructure and the introduction and training of relevant technical personnel in the central and western regions to improve the level of digital inclusive finance,enriching digital inclusive financial products in each region and improving the digital inclusive financial service system to improve the coverage breadth and use depth of digital inclusive finance.