Smart finance, skilled workers: The role of labor force in FinTech-Driven economic growth

Financial technology has transformed global financial systems, yet the conditions under which regions benefit from FinTech adoption remain unclear. This study examines how labor force characteristics moderate the relationship between FinTech development and regional economic growth using panel data from 276 Chinese prefecture-level cities during 2010–2023. Employing dual fixed effects models with multiple endogeneity corrections, we find that FinTech development significantly promotes regional economic growth. Critically, labor force quality and scale serve as essential moderators of this relationship. Regions with higher educational attainment experience amplified growth benefits from FinTech adoption, consistent with human capital theory and skill-biased technological change frameworks. Similarly, regions with larger non-agricultural employment shares demonstrate stronger FinTech effects through network externalities and market expansion mechanisms. Heterogeneity analysis reveals that western regions gain more from FinTech compared to eastern areas, supporting inclusive finance theory, while high human capital regions show superior technology absorption capacity. These findings advance understanding of technology-driven growth by identifying the conditional factors that determine FinTech effectiveness. For policy, our results indicate that maximizing FinTech benefits requires coordinated strategies linking financial technology investments with human capital development and accounting for regional differences in educational infrastructure and economic structure.