Research On The Mechanism Of Digital Finance To Drive The High-quality Development Of County Economy

The county economy is the entry point for realizing urban-rural integration,the landing point for promoting the rural revitalization strategy,and the launching point for accelerating the construction of a strong agricultural country.The shortcomings of achieving common prosperity in China are in the counties,and the root causes of poverty and unbalanced and insufficient development are in the counties.The high-quality development of the county economy has become a necessary condition for comprehensively promoting the rural revitalization strategy and comprehensively building a modern and strong country.The emergence of digital finance,a new form of finance,has greatly improved the quantity and quality of financial service supply in counties,and is of great significance in cracking the dilemma of high-quality economic development in counties and solving the problem of unbalanced regional economic development.Firstly,based on theories related to financial development and high-quality economic development,this paper analyses the direct influence mechanism of digital finance on the high-quality development of county economies from five aspects:innovation,coordination,green leadership,openness to the outside world and sharing level of county economic development;it also analyses its indirect influence mechanism from the residential sector and industrial sector,and explores the influence of digital finance on county economies based on the perspective of industrial agglomeration The non-linear characteristics of digital finance affecting the high-quality development of county economy.Secondly,based on the current situation of county economy and digital finance development in Henan,an evaluation index system for the high-quality development of county economy was constructed,and the panel data of 104 counties(cities)in Henan from 2014 to 2020 were selected.The results found that:(1)digital finance directly promotes the high-quality economic development of counties in Henan,and this promotion effect is stronger in county-level cities and large grain-producing counties than in county cities and non-grain-producing counties,and digital finance is more likely to promote the high-quality economic development of hilly counties than mountainous counties and plain counties.(2)Narrowing the income gap between urban and rural residents in counties and promoting the upgrading of county industrial structures are the indirect impact mechanisms of digital finance driving high-quality economic development in counties.(3)The impact of digital finance on the high-quality economic development of counties has a double threshold effect based on the level of industrial agglomeration,i.e.the enabling effect of digital finance on the high-quality economic development of counties gradually decreases after the level of secondary industrial agglomeration crosses the first threshold and strengthens after the level of tertiary industrial agglomeration crosses the first and second thresholds.Finally,this paper proposes to give full play to the driving role of digital finance in the high-quality development of county economies by accelerating the construction of digital financial infrastructure,activating the vitality of financial market players,strengthening the support of industrial agglomeration,and making full use of the endowment characteristics of counties.The innovation of this paper lies in exploring the intrinsic mechanism of digital finance’s role in the high-quality development of county economies from both the industrial and residential sectors,based on more micro-level county data.An evaluation index system for the high-quality development of county economies is established in five dimensions: innovative development and transformation of dynamic energy,coordinated development and structural optimisation,green development and low-carbon action,open development and efficiency change,and shared development and urban-rural synergy,and the non-linear characteristics of the impact of digital finance on the high-quality development of county economies are explored based on the perspective of industrial agglomeration.