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Digital inclusive finance and local government debt: Examining the mechanism of impact on high-quality rural development from a macroeconomic perspective

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  • Zheng, Sufang
  • Huang, Siming
  • Deng, Xu

Abstract

Using panel data from 282 cities covering 2012 to 2022, this study deeply explores the impact of digital inclusive finance on high-quality rural development and the mediating mechanism of local government debt in this relationship. The results of our systematic empirical analysis reveal that digital inclusive finance has a significantly positive influence on promoting high-quality rural development, which provides strong support for sustainable rural economic growth. Furthermore, we determine that local government debt functions as a complete intermediary between digital inclusive finance and high-quality rural development, emphasizing the significant influence of local governments as mediators between finance and economic development. This finding has important implications for government departments, indicating that governments should proactively leverage digital inclusive finance policies to promote high-quality rural development and enhance financial services' efficiency, promoting the optimization of the entire rural economic structure and advancing sustainable growth.

Suggested Citation

  • Zheng, Sufang & Huang, Siming & Deng, Xu, 2025. "Digital inclusive finance and local government debt: Examining the mechanism of impact on high-quality rural development from a macroeconomic perspective," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s1057521925001607
    DOI: 10.1016/j.irfa.2025.104073
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