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The dynamic relationship among digital inclusive finance, integration of industries in rural areas, and rural revitalization

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  • Zeng, Yuhan
  • Zhou, Xia

Abstract

The implementation of China's Rural Revitalization Strategy has been substantially supported by two key factors: the development of digital financial inclusion and the convergence of three industries in rural regions. Utilizing panel data spanning from 2011 to 2023, this study investigates how these two factors collectively influence rural revitalization, with particular attention to their synergistic relationship and conditional effects. Empirical results demonstrate that digital financial inclusion exerts a statistically significant positive influence on rural development, while industrial integration similarly contributes to revitalization efforts. Notably, the convergence of rural industries serves as a crucial moderator that enhances digital finance's developmental impact, though this moderating influence varies across regions - being particularly pronounced in areas with advanced agricultural mechanization. To address potential endogeneity concerns, the analysis incorporates lagged digital financial inclusion indicators as instrumental variables, thereby robustly validating its beneficial role in rural transformation.

Suggested Citation

  • Zeng, Yuhan & Zhou, Xia, 2025. "The dynamic relationship among digital inclusive finance, integration of industries in rural areas, and rural revitalization," Finance Research Letters, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pa:s1544612325011067
    DOI: 10.1016/j.frl.2025.107848
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    2. Yin, Xiwen & Tao, Tao & Wang, Guowei, 2025. "Digital inclusive finance and university graduate employment: evidence from the Chinese General Social Survey," Finance Research Letters, Elsevier, vol. 85(PE).

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