Affiliation:
1. School of Economics and Finance Huaqiao University Quanzhou China
2. School of Public Economics and Administration Shanghai University of Finance and Economics Shanghai China
3. National Academy of Development and Strategy Renmin University of China Beijing China
Abstract
AbstractIn this study, we examine the interplay between regional digital financial inclusion and social capital with a focus on social trust. Our empirical analysis shows that regions with enhanced digital financial services experience a significant boost in social trust. Specifically, a one standard deviation increase in regional digital financial inclusion correlates with an approximate increase of 1% in social trust among frequent Internet users compared with infrequent users. We futher find that growth in social trust is largely attributable to noneconomic factors, such as improvements in perceived fairness. Conversely, the economic factor of increased individual income exhibits limited explanatory strength in this context. These findings shed light on the dynamics of regional development and highlight critical policy considerations for fostering social capital through digital finance.