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Digital Inclusive Finance, Environmental Regulation, and Regional Economic Growth: An Empirical Study Based on Spatial Spillover Effect and Panel Threshold Effect

Author

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  • Rijia Ding

    (School of Management, China University of Mining and Technology (Beijing), Beijing 100083, China)

  • Fenfen Shi

    (School of Management, China University of Mining and Technology (Beijing), Beijing 100083, China)

  • Suli Hao

    (School of Management, China University of Mining and Technology (Beijing), Beijing 100083, China)

Abstract

The development of digital financial inclusion has added a new vitality to economic growth, and environmental regulation is an important tool to achieve sustainable economic growth. Therefore, whether there is a synergistic effect between these two factors of economic growth is a topic worth exploring. This paper uses the space econometric model and threshold model to explore the impact of digital financial inclusion and environmental regulation on regional economic growth using panel data from 30 Chinese provinces, collected between 2011 and 2019. The research results prove that the development of digital financial inclusion and the improvement in the intensity of environmental regulation have a significant direct promotion effect and negative spatial spillover effect on regional economic growth. Moreover, the two have a significant synergistic effect on regional economic growth. A panel threshold analysis showed that, with the improvement in the level of digital financial inclusion, the regression coefficient of environmental regulation changed from negative to positive, which played a significant role in promoting regional economic growth. The heterogeneity analysis found that digital inclusive finance in eastern regions of China plays a greater role in promoting the economy, whereas environmental regulation in the central region plays a greater role in promoting the economy. The synergy between the two in the central region greatly promotes economic development. When digital inclusive finance is used as the threshold variable, environmental regulation in eastern and western regions has a single-threshold effect on regional economic development. Based upon these research results, this paper proposes that a coordination mechanism between digital financial inclusion and environmental regulation should be established to give full play to their synergies in sustainable economic growth.

Suggested Citation

  • Rijia Ding & Fenfen Shi & Suli Hao, 2022. "Digital Inclusive Finance, Environmental Regulation, and Regional Economic Growth: An Empirical Study Based on Spatial Spillover Effect and Panel Threshold Effect," Sustainability, MDPI, vol. 14(7), pages 1-25, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4340-:d:787927
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    8. Yu Deng & Wenxia Zhang, 2023. "Modified CPT-TODIM method for evaluating the development level of digital inclusive finance under probabilistic hesitant fuzzy environment," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-22, March.
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    13. Liu, Dongwang & Yang, Ziqi, 2024. "Asymmetric linkages among fintech, oil prices, governance, and growth in Southeast Asian economies," Resources Policy, Elsevier, vol. 88(C).
    14. Hanjin Li & Yang Shi & Jianxin Zhang & Zhenkun Zhang & Zhaosen Zhang & Maogang Gong, 2023. "Digital inclusive finance & the high-quality agricultural development: Prevalence of regional heterogeneity in rural China," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-24, March.
    15. Syed Ahsan Jamil & Ishfaq Hamid & Md Shabbir Alam & Showkat Ahmad, 2025. "Digitizing Prosperity: How Digital Finance Transforms Agricultural Incomes in China," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 32(2), pages 631-662, June.
    16. Yin, Yikun & Liu, Haoyu, 2024. "Fin-tech indicators, mineral resources and green productivity: Role of human development and globalization in BRICS region," Resources Policy, Elsevier, vol. 89(C).
    17. Yuting Shi & Qiuwang Cheng & Yizhen Wu & Qiaohua Lin & Anxin Xu & Qiujin Zheng, 2023. "Promoting or Inhibiting? Digital Inclusive Finance and Cultural Consumption of Rural Residents," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    18. Gao, Xinxiang & Yu, Jiawen & Pertheban, Thillai Raja & Sukumaran, Sheiladevi, 2024. "Do fintech readiness, digital trade, and mineral resources rents contribute to economic growth: Exploring the role of environmental policy stringency," Resources Policy, Elsevier, vol. 93(C).
    19. Fenfen Shi & Rijia Ding & Heqing Li & Suli Hao, 2022. "Environmental Regulation, Digital Financial Inclusion, and Environmental Pollution: An Empirical Study Based on the Spatial Spillover Effect and Panel Threshold Effect," Sustainability, MDPI, vol. 14(11), pages 1-28, June.
    20. Isaac Appiah-Otoo & Xudong Chen, 2025. "Is crowdfunding the solution? Appraising the environmental contributions of crowdfunding," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 831-855, January.
    21. Julia Varlamova & Ekaterina Kadochnikova, 2023. "Modeling the Spatial Effects of Digital Data Economy on Regional Economic Growth: SAR, SEM and SAC Models," Mathematics, MDPI, vol. 11(16), pages 1-31, August.
    22. Hua Tao & Min Tao & Rong Wang, 2022. "Do Education Human Capital and Environmental Regulation Drive the Growth Efficiency of the Green Economy in China?," Sustainability, MDPI, vol. 14(24), pages 1-20, December.

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