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The impact of digital finance on the social governance capacity

Author

Listed:
  • Xiong, Mengzhi
  • Yang, Xuan
  • Huang, Bihui

Abstract

As social governance evolves, the emphasis is shifting towards integrating technological applications, notably digital finance, which enhances social governance capacity. This article constructs a social governance capacity indicator system and conducts regression estimation based on China's provincial panel data from 2011 to 2022. The results indicate that digital finance has a discernible impact on social governance capacity, with this impact being contingent upon the degree of regional openness to external influences. Furthermore, information processing capacity and technology application capacity serve as a conduit between the two.

Suggested Citation

  • Xiong, Mengzhi & Yang, Xuan & Huang, Bihui, 2025. "The impact of digital finance on the social governance capacity," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000492
    DOI: 10.1016/j.frl.2025.106784
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    References listed on IDEAS

    as
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    6. Yue, Pengpeng & Korkmaz, Aslihan Gizem & Yin, Zhichao & Zhou, Haigang, 2022. "The rise of digital finance: Financial inclusion or debt trap?," Finance Research Letters, Elsevier, vol. 47(PA).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Digital finance; Social governance capacity; Opening up;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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