Digital finance and regional economic resilience: Theoretical framework and empirical test

A vast literature has explored the economic effects of digital finance (DF). But the mechanism of how DF affects regional economic resilience (RER) is still a dark box. We theoretically analyze the relationship between DF and RER and perform an empirical test based on panel data for 31 provinces in China from 2011 to 2021. The results show that DF has a positive effect on regional economic resilience, but the effect is not consistent across subsystems. DF has positive spatial externalities, meaning that DF not only increases the local RER, but also has a positive impact on neighbouring areas.

Automated summary

This study examines the impact of digital finance (DF) on regional economic resilience (RER) through theoretical analysis and empirical research. The results show that DF has a positive effect on RER, but the effect varies across subsystems. DF also has positive spatial externalities, meaning that it not only improves local RER, but also has a positive impact on neighboring areas.