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Digital transformation and rural financial development

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  • Zhao, Qiao
  • Wang, Wangqing

Abstract

This paper analyzes how digital transformation impacts rural financial development using the 2011–2022 panel data from 30 Chinese provinces. Results show that digital transformation significantly enhances rural financial development, with broadband coverage and the urban-rural income gap playing key roles. In regions with better infrastructure and balanced development, this positive effect is amplified. Heterogeneity tests reveal that the competitive landscape of financial services and demographic characteristics also significantly influence outcomes. These findings offer valuable insights for leveraging digital transformation to support rural revitalization.

Suggested Citation

  • Zhao, Qiao & Wang, Wangqing, 2025. "Digital transformation and rural financial development," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010864
    DOI: 10.1016/j.frl.2025.107828
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    Cited by:

    1. Mao, Hui & Zhou, Xiaoyan & Fu, Yong & Dai, Congyi, 2026. "The digital economy and rural household energy consumption in China," Energy Policy, Elsevier, vol. 210(C).
    2. Wang, Yang & Cai, Qiang, 2025. "Education fiscal expenditure, digital inclusive finance, and urban-rural education returns," Finance Research Letters, Elsevier, vol. 86(PG).
    3. Zhu, Enyang & Lang, Shusen, 2025. "Local government debt expansion and regional financial risks: mitigation effect of financial regulation or risk resonance?," Finance Research Letters, Elsevier, vol. 86(PD).

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G01 - Financial Economics - - General - - - Financial Crises
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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