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The Transmission Channels and Threshold Mechanisms for Digital Finance to Promote Entrepreneurship: Evidence From China

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  • Tanli Kuang
  • Yanna Lu
  • Linyu Zhang
  • Wenjing Du

Abstract

Using provincial-level data from China, this study employs a panel model to examine the impact of digital finance (DF) on entrepreneurship. Our findings show that DF has a significant promoting effect on entrepreneurship, mainly from the dimensions of coverage breadth and use depth. A series of endogenous and robust tests show that the conclusion is still valid. The role of DF in promoting entrepreneurship is heterogeneous. In the process of DF promoting entrepreneurship, the upgrading of industrial structure has a mediating effect, and DF itself and capital allocation efficiency have a threshold effect. Accordingly, policy recommendations are put forward to give full play to the impact of DF on entrepreneurship and enhance the level of entrepreneurship.

Suggested Citation

  • Tanli Kuang & Yanna Lu & Linyu Zhang & Wenjing Du, 2026. "The Transmission Channels and Threshold Mechanisms for Digital Finance to Promote Entrepreneurship: Evidence From China," Discrete Dynamics in Nature and Society, Hindawi, vol. 2026, pages 1-13, September.
    • Handle: RePEc:hin:jnddns:5416418
    DOI: 10.1155/ddns/5416418
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