IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i10p4034-d1392671.html
   My bibliography  Save this article

Does Digital Inclusive Finance Help County Level Governance in the Five Provinces of Northwest China, from the Perspective of Economic Resilience?

Author

Listed:
  • Xinshu Gong

    (Department of Economics and Management, Shihezi University, Shihezi 832000, China)

  • Liyu Zhao

    (Department of Economics and Management, Shihezi University, Shihezi 832000, China)

Abstract

The sustainable development of a country requires stable funds to reshape and restore its economy, something which cannot be separated from the support of financial services. Digital financial inclusion, with its inclusive and extensive features, has provided a new impetus for economic development and governance. Based on the panel data of 193 counties in 5 provinces of northwest China from 2014 to 2021, this paper uses a bi-directional fixed effect model, an intermediary effect model and a threshold effect model in order to test digital inclusive finance and county-level economic resilience, and to explore the internal correlation details. The results show that digital inclusive finance will significantly enhance the economic resilience of the five northwestern provinces by improving capital allocation efficiency, enhancing entrepreneurship and employment vitality, and reducing pollution emissions. In addition, there is a double threshold effect between capital allocation efficiency and employment vitality, in which the threshold effect of capital allocation efficiency presents a progressively increasing state, and in which the threshold effect of entrepreneurship and employment vitality presents a state of fluctuating increase. Therefore, China needs to further improve the digital inclusive financial environment in its northwest; continue and deepen the significant functions of digital inclusive finance in resource allocation efficiency, entrepreneurship and employment vitality, and environmental protection; and provide guidance for solving regional imbalances and promoting national sustainable development.

Suggested Citation

  • Xinshu Gong & Liyu Zhao, 2024. "Does Digital Inclusive Finance Help County Level Governance in the Five Provinces of Northwest China, from the Perspective of Economic Resilience?," Sustainability, MDPI, vol. 16(10), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4034-:d:1392671
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/10/4034/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/10/4034/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Albena Pergelova & Fernando Angulo-Ruiz, 2014. "The impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcome," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(9-10), pages 663-705, December.
    2. Juan Luo & Bao-zhen Li, 2022. "Impact of Digital Financial Inclusion on Consumption Inequality in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 529-553, September.
    3. Jin, Laiqun & Dai, Jiaying & Jiang, Weijie & Cao, Kairui, 2023. "Digital finance and misallocation of resources among firms: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    4. Lee, Chien-Chiang & Lou, Runchi & Wang, Fuhao, 2023. "Digital financial inclusion and poverty alleviation: Evidence from the sustainable development of China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 418-434.
    5. Tao Cen & Shuping Lin & Qiaoyun Wu, 2022. "How Does Digital Economy Affect Rural Revitalization? The Mediating Effect of Industrial Upgrading," Sustainability, MDPI, vol. 14(24), pages 1-13, December.
    6. Mahmood Ahmad & Abdul Majeed & Muhammad Asif Khan & Muhammad Sohaib & Khurram Shehzad, 2021. "Digital financial inclusion and economic growth: provincial data analysis of China," China Economic Journal, Taylor & Francis Journals, vol. 14(3), pages 291-310, September.
    7. Naishu Yu & Yanzhe Wang, 2021. "Can Digital Inclusive Finance Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suhrab, Muhammad & Chen, Pinglu & Ullah, Atta, 2024. "Digital financial inclusion and income inequality nexus: Can technology innovation and infrastructure development help in achieving sustainable development goals?," Technology in Society, Elsevier, vol. 76(C).
    2. Fu, Hengni & Zheng, Chengsi & Yang, PingYu, 2024. "Digital inclusive finance and green transformation of manufacturing enterprises: Empirical analysis based on the dual perspectives of demand and supply," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Mao, Fengfu & Wang, Yuanfan & Zhu, Mengsi, 2023. "Digital financial inclusion, traditional finance system and household entrepreneurship," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    4. Bai, Hengrui & Wu, Yiming & Wang, Ruiqian, 2023. "Does digital financial inclusion lead to regional differences in trade credit financing?: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1475-1489.
    5. Zhang, Cheng & Zhu, Yuyao & Zhang, Limin, 2024. "Effect of digital inclusive finance on common prosperity and the underlying mechanisms," International Review of Financial Analysis, Elsevier, vol. 91(C).
    6. Ziqin Xu & Hui Niu & Yuxuan Wei & Yiping Wu & Yang Yu, 2024. "Impact and Mechanisms of Digital Inclusive Finance in Relation to Farmland Transfer: Evidence from China," Sustainability, MDPI, vol. 16(1), pages 1-21, January.
    7. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    8. Tang, Yunfeng & Zhang, Xuan & Lu, Shibao & Taghizadeh-Hesary, Farhad, 2023. "Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences," Resources Policy, Elsevier, vol. 86(PA).
    9. Yifeng Xie & Haitao Wu & Ruikuan Yao, 2023. "The Impact of Climate Change on the Urban–Rural Income Gap in China," Agriculture, MDPI, vol. 13(9), pages 1-17, August.
    10. Wei-Liang Zhang & Li-Ying Song & Muhammad Ilyas, 2023. "Can the digital economy promote fiscal effort?: Empirical evidence from Chinese cities," Economic Change and Restructuring, Springer, vol. 56(5), pages 3501-3525, October.
    11. Marie-Claire Broekhoff & Carin van der Cruijsen & Jakob de Haan, 2023. "Towards financial inclusion: trust in banks’ payment services among groups at risk," Working Papers 795, DNB.
    12. Jamil, Abd Rahim Md. & Law, Siong Hook & Mohamad Khair-Afham, M.S. & Trinugroho, Irwan, 2023. "Financial inclusion and economic uncertainty in developing countries: The role of digitalisation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 786-806.
    13. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    14. Nan Hao & Mingxing Ji, 2023. "Development of Platform Economy and Urban–Rural Income Gap: Theoretical Deductions and Empirical Analyses," Sustainability, MDPI, vol. 15(9), pages 1-25, May.
    15. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Towards net-zero emissions: Can green bond policy promote green innovation and green space?," Energy Economics, Elsevier, vol. 121(C).
    16. Yanling Li & Mengxin Wang & Gaoke Liao & Junxia Wang, 2022. "Spatial Spillover Effect and Threshold Effect of Digital Financial Inclusion on Farmers’ Income Growth—Based on Provincial Data of China," Sustainability, MDPI, vol. 14(3), pages 1-16, February.
    17. Oyewole, Oluwatomisin J. & Al-Faryan, Mamdouh Abdulaziz Saleh & Adekoya, Oluwasegun B. & Oliyide, Johnson A., 2024. "Energy efficiency, financial inclusion, and socio-economic outcomes: Evidence across advanced, emerging, and developing countries," Energy, Elsevier, vol. 289(C).
    18. Jian Zhu & Zifang Li & Hui Wang, 2023. "Internet Development and Urban–Rural Consumption Inequality: Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    19. Godfred Anakpo & Zizipho Xhate & Syden Mishi, 2023. "The Policies, Practices, and Challenges of Digital Financial Inclusion for Sustainable Development: The Case of the Developing Economy," FinTech, MDPI, vol. 2(2), pages 1-17, June.
    20. Feng Zhou & Chunhui Wen, 2023. "Research on the Level of Agricultural Green Development, Regional Disparities, and Dynamic Distribution Evolution in China from the Perspective of Sustainable Development," Agriculture, MDPI, vol. 13(7), pages 1-47, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4034-:d:1392671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.