The Impact of Digital Inclusive Finance on High-Quality Economic Development: A Research Study

Abstract

As China's economy transitions from high-speed growth to high-quality development, digital inclusive finance emerges as a dynamic and pivotal sector within the country's financial system. This domain plays a crucial role in addressing the shortcomings of traditional financial services, enhancing the efficiency of financial services, promoting consumption, and driving economic growth. As the turmoil caused by the COVID-19 epidemic gradually stabilizes, the impact of the epidemic on the economic development of various countries is gradually reduced, and the development of the global economy gradually returns to normal, China's economic development is facing new opportunities and challenge. Given the current challenges in China's economic environment, China has made new adjustments and begun to promote high-quality economic development on the premise of significantly improving quality and efficiency. Therefore, in the current stage of China’s economic development, it is imperative to investigate whether digital inclusive finance can indeed foster high-quality economic development. This paper begins by reviewing literature relevant to digital inclusive finance and high-quality economic development. Subsequently, utilizing panel data from 2011 to 2020 across 30 provinces, a bidirectional fixed-effects model is employed to validate the positive impact of digital inclusive finance on high-quality economic development. The study further explores whether digital inclusive finance exhibits positive effects on high-quality economic development in different regions. Finally, based on the research findings, the paper concludes with several policy recommendations for optimizing the role of digital finance in promoting regional economic growth.