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Can digital finance boost urban economic vitality?

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  • Zhou, Hongyu

Abstract

Against the backdrop of the global economy being impacted by the pandemic and geopolitical conflicts, enhancing urban economic vitality is crucial for economic resilience and sustainable development. This study examines the impact of digital finance development on urban economic vitality through empirical research using prefecture-level city data in China. Findings reveal that digital finance effectively boosts urban economic vitality, with potential mechanisms including industrial structure upgrading, consumption upgrading and technological innovation. Further analysis indicates that the promotional effect of digital finance on economic vitality is more pronounced in densely populated regions with well-developed digital infrastructure. This research highlights the significant role of digital finance in enhancing regional economic vitality.

Suggested Citation

  • Zhou, Hongyu, 2026. "Can digital finance boost urban economic vitality?," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025292
    DOI: 10.1016/j.frl.2025.109280
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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