Analysis Of The Impact Of China’s Digital Inclusive Finance On The Inclusive Growth Of Provincial Economy

As the socialism with Chinese characteristics enters a new era,China’s economic development has made remarkable achievements,but issues of poverty and inequality,still exist.In such context,to explore a better economic development pattern has become a key topic at home and abroad.Inclusive economic growth,which advocates fair,coordinated,and sustainable economic development,provides strategic guidance for the global economic development model and has become the primary objective of China’s economic development.In recent years,as the digital economy and Internet technology have developed rapidly,digital inclusive finance is regarded as an important way to achieve inclusive growth.In 2016,digital inclusive finance became an important topic of the G20 Summit,which pointed out that countries should actively promote the development of digital inclusive finance to achieve inclusive economic growth.In 2018,APEC held a conference on the theme of "Harnessing Inclusive Opportunities,Embracing the Digital Future",emphasizing that the digital economy is a pillar for inclusive development of the global economy.However,compared with the positive practice of inclusive growth and digital inclusive finance,fewer researches on the relationship between them have been carried out.Therefore,the thesis attempts to explore the relationship between digital inclusive finance and inclusive growth from two aspects,namely theoretical analysis and empirical testing,which has profound theoretical and practical significance for achieving inclusive economic growth.Around the theme,the thesis summarizes the literature and classic basic theories of digital inclusive finance and inclusive growth at home and abroad,investigates the conduction path of digital inclusive finance on inclusive growth,and sums up the effect mechanism.On the basis of the above theoretical analysis,the thesis selects the data of various provinces in China from 2011 to 2019 for experimental testing,and applies a fixed effect model to conduct benchmark regression analysis.The interaction terms are introduced in the fixed effect model for the heterogeneity analysis;the threshold regression model is adopted with the total index of digital inclusive finance as the threshold variable,to analyze threshold regression;the intermediary effect model is applied for transmission path analysis.From the above analysis,the impact mechanism of digital inclusive finance on inclusive economic growth is deeply explored.Through theoretical analysis and empirical testing,the thesis comes to the following conclusions.First,the total index of digital inclusive finance and its three sub-indices all show a positive role in promoting inclusive economic growth,of which the coverage breadth subindex has the greatest promotion effect.Second,the impact of digital inclusive finance on inclusive growth is regionally heterogeneous.Digital inclusive finance has a stronger role in promoting the inclusive growth of the economically underdeveloped western region,the northern region where industrial structure transformation and policy response are relatively slow,and the regions with slow development of traditional inclusive finance.In brief,the service efficiency shows an unbalanced effect.Third,the impact of digital inclusive finance on inclusive growth shows a significant feature of non-linear double threshold.With the improvement of the digital inclusive finance development,its effect on promoting inclusive growth becomes weaker.Fourth,digital inclusive finance can promote economic inclusive growth through improving the level of innovation and human capital.Finally,combining the above conclusions with China’s actual national conditions,the thesis puts forward targeted opinions from four views,including optimizing the market environment for the progress of digital inclusive finance,consolidating the technical foundation for the development of digital inclusive finance,alleviating the regional imbalance in the effectiveness of digital inclusive finance,and dredging the transmission path of digital inclusive financial services,so as to provide a reference for promoting the development of digital inclusive finance and achieving inclusive economic growth.