Does Digital Inclusive Finance Increase Industry Chain Resilience in China?

Abstract

A high level of industry chain resilience is essential for China’s economy to operate safely, soundly, and robustly. It also serves as the foundation for the nation’s capacity for growth, competitiveness, sustainable development capacity, and ability to respond to various external dangers. In this regard, the swift advancement of digital inclusive finance has shown significant prospects for enhancing the resilience of China’s industry chain. This study empirically examines the impact of digital inclusive finance on industry chain resilience, based on China’s provincial panel data from 2013 to 2021. The findings demonstrate the following: digital inclusive finance significantly contributes to industry chain resilience; optimization of industrial structure and technological innovation play mediating roles in the relationship between digital inclusive finance and industry chain resilience; and the high-quality development of the regional economy has a positive moderating effect on that relationship. Subsequent investigation reveals quantile and regional variations in the effect of digital inclusive finance on industry chain resilience. This study not only confirms the critical role that digital inclusive finance plays in bolstering industry chain resilience but also identifies a workable strategy for doing so in the case of China.