The Impact of Digital Inclusive Finance on the High-Quality Development of Guangdong’s Real Economy: An Analysis Based on Spatial Econometric Models — Oak Academic Publishing
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The Impact of Digital Inclusive Finance on the High-Quality Development of Guangdong’s Real Economy: An Analysis Based on Spatial Econometric Models
The real economy is the lifeline of a country and the foundation for stable economic operation. Serving the real economy is the responsibility of the financial sector, and developing inclusive digital finance is essential for the real economy. This study aims to explore the impact mechanism and spatial spillover effects of inclusive digital finance on the high-quality development of the real economy in Guangdong Province. Panel data from Guangdong Province and its 21 prefecture-level cities from 2014 to 2020 are selected, and an indicator system for inclusive digital finance and high-quality development of the real economy is constructed. The study employs spatial econometric models for empirical analysis. The empirical results show that: 1) There is spatial dependence between inclusive digital finance and high-quality development of the real economy in Guangdong Province. The spatial correlation of inclusive digital finance development in each prefecture-level city generally shows a downward trend, while the spatial correlation of high-quality development of the real economy shows an overall upward trend. 2) The overall Pearl River Delta urban agglomeration has a high level of development in both inclusive digital finance and high-quality development of the real economy, which can radiate and drive neighboring regions. 3) There is polarization in the high-quality development of the real economy among prefecture-level cities in Guangdong Province, and the development pattern remains relatively unchanged, characterized by the distribution pattern of high-high agglomeration areas and low-low agglomeration areas. 4) Inclusive digital finance has a significant positive promoting effect on the high-quality development of the real economy in Guangdong Province, and the depth of inclusive digital finance usage is one of the important driving forces. 5) Inclusive digital finance has a negative spatial spillover effect on the high-quality development of the real economy in Guangdong Province, indicating that the development of inclusive digital finance in one area may inhibit the high-quality development of the real economy in adjacent areas. 6) The breadth of coverage in different dimensions has a positive spatial spillover effect on the high-quality development of the real economy in Guangdong Province, while usage depth has a negative spatial spillover effect.
KeywordsDigital Financial InclusionReal EconomyMoran IndexSpatial Durbin Model
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Wang, J. (2023). Digital Inclusive Finance and Rural Revitalization. Finance Research Letters, 57, Article ID: 104157. https://doi.org/10.1016/j.frl.2023.104157
Xie, X., Shen, Y., Zhang, H., & Guo, F. (2018). Can Digital Finance Promote Entrepreneurship?—Evidence from China. China Economic Quarterly, 17, 1557-1580. (In Chinese) https://doi.org/10.13821/j.cnki.ceq.2018.03.12
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Yakubi, Y. A. Y., Basuki, B., Purwono, R., & Usman, I. (2022). The Impact of Digital Financial Inclusion on Socio-Economic Development in Low-Income Countries. Applied Econometrics and International Development, 22, 89-108.
Yi, X., & Zhou, L. (2018). Does the Development of Digital Inclusive Finance Significantly Affect Household Consumption? Micro Evidence from Chinese Households. Financial Research, No. 11, 47-67. (In Chinese)
Zhang, X., Li, J., Xiang, D., & Worthington, A. C. (2023). Digitalization, Financial Inclusion, and Small and Medium-Sized Enterprise Financing: Evidence from China. Economic Modelling, 126, Article ID: 106410. https://doi.org/10.1016/j.econmod.2023.106410
Anselin, L. (1990). Spatial Econometrics: Methods and Models. Journal of the American Statistical Association, 85, 160.
Beck, T., Pamuk, H., Ramrattan, R., & Uras, B. R. (2018). Payment Instruments, Finance and Development. Journal of Development Economics, 133, 162-186. https://doi.org/10.1016/j.jdeveco.2018.01.005
Chen, Y., Yang, S., & Li, Q. (2022). How Does the Development of Digital Financial Inclusion Affect the Total Factor Productivity of Listed Companies? Evidence from China. Finance Research Letters, 47, Article ID: 102956. https://doi.org/10.1016/j.frl.2022.102956
Cheng, X., & Gong, Q. (2020). How the Digital Inclusive Finance Affects the Development of the Real Economy—Analysis Based on System GMM Model and Mediation Effect Test. Journal of Hunan University (Social Sciences Edition), 34, 59-67. (In Chinese) https://doi.org/10.16339/j.cnki.hdxbskb.2020.03.008
Geng, Z., & He, G. (2021). Digital Financial Inclusion and Sustainable Employment: Evidence from Countries along the Belt and Road. Borsa Istanbul Review, 21, 307-316. https://doi.org/10.1016/j.bir.2021.04.004
Jiao, Y. (2021). Digital Inclusive Finance Affects the Development of the Development of the Network Retail Industry—Base Based on the Analysis of Dynamic Space Dubin Model. Price Theory and Practice, No. 11, 129-133+198. (In Chinese) https://doi.org/10.19851/j.cnki.cn11-1010/f.2021.11.408
Lee, C.-C., Tang, M., & Lee, C.-C. (2023). Reaping Digital Dividends: Digital Inclusive Finance and High-Quality Development of Enterprises in China. Telecommunications Policy, 47, Article ID: 102484. https://doi.org/10.1016/j.telpol.2022.102484
LeSage, J. P., & Pace, R. K. (2009). Introduction to Spatial Econometrics. CRC Press. https://doi.org/10.1201/9781420064254
Li, Y., Wang, M., Liao, G., & Wang, J. (2022). Spatial Spillover Effect and Threshold Effect of Digital Financial Inclusion on Farmers’ Income Growth—Based on Provincial Data of China. Sustainability, 14, Article No. 1838. https://doi.org/10.3390/su14031838
Ma, J., & Li, Z. (2021). Does Digital Financial Inclusion Affect Agricultural Eco-Efficiency? A Case Study on China. Agronomy, 11, Article No. 1949. https://doi.org/10.3390/agronomy11101949
Ozili, P. K. (2017). Impact of Digital Finance on Financial Inclusion and Stability. Borsa Istanbul Review, 18, 329-340. https://doi.org/10.1016/j.bir.2017.12.003
Shen, Y., Hueng, C. J., & Hu, W. (2021). Measurement and Spillover Effect of Digital Financial Inclusion: A Cross-Country Analysis. Applied Economics Letters, 28, 1738-1743. https://doi.org/10.1080/13504851.2020.1853663
Sun. Y., & You, X. (2023). Do Digital Inclusive Finance, Innovation, and Entrepreneurship Activities Stimulate Vitality of the Urban Economy? Empirical Evidence from the Yangtze River Delta, China. Technology in Society, 72, Article ID: 102200. https://doi.org/10.1016/j.techsoc.2023.102200
Tang, X., Ding, S., Gao, X., & Zhao, T. (2022). Can Digital Finance Help Increase the Value of Strategic Emerging Enterprises? Sustainable Cities and Society, 81, Article ID: 103829. https://doi.org/10.1016/j.scs.2022.103829
Wang, J. (2023). Digital Inclusive Finance and Rural Revitalization. Finance Research Letters, 57, Article ID: 104157. https://doi.org/10.1016/j.frl.2023.104157
Xie, X., Shen, Y., Zhang, H., & Guo, F. (2018). Can Digital Finance Promote Entrepreneurship?—Evidence from China. China Economic Quarterly, 17, 1557-1580. (In Chinese) https://doi.org/10.13821/j.cnki.ceq.2018.03.12
Xu, R., Yao, D., & Zhou, M. (2023). Does the Development of Digital Inclusive Finance Improve the Enthusiasm and Quality of Corporate Green Technology Innovation? Journal of Innovation & Knowledge, 8, Article ID: 100382. https://doi.org/10.1016/j.jik.2023.100382
Yakubi, Y. A. Y., Basuki, B., Purwono, R., & Usman, I. (2022). The Impact of Digital Financial Inclusion on Socio-Economic Development in Low-Income Countries. Applied Econometrics and International Development, 22, 89-108.
Yi, X., & Zhou, L. (2018). Does the Development of Digital Inclusive Finance Significantly Affect Household Consumption? Micro Evidence from Chinese Households. Financial Research, No. 11, 47-67. (In Chinese)
Zhang, X., Li, J., Xiang, D., & Worthington, A. C. (2023). Digitalization, Financial Inclusion, and Small and Medium-Sized Enterprise Financing: Evidence from China. Economic Modelling, 126, Article ID: 106410. https://doi.org/10.1016/j.econmod.2023.106410