Can digital financial inclusion promote China's economic growth?

Can digital financial inclusion as an emerging and innovative financial service promote economic growth? Based on a Bayesian macroeconomic analysis framework, this paper introduces the level of Internet development as a threshold variable, analyzes the impact of digital financial inclusion on economic growth based on provincial panel data from 2011 to 2019 in China, and finally explores the mediating effect of digital financial inclusion on economic growth through a multiple mediation model. The results show that (1) digital financial inclusion development has a significant contribution to economic growth. (2) The impact of digital financial inclusion development on economic growth has a significant Internet threshold effect. (3) Promoting small and medium-sized enterprise entrepreneurship and stimulating residents' consumption are two important channels through which digital financial inclusion development affects economic growth.

Automated summary

The study indicates that digital financial inclusion significantly contributes to economic growth, with its impact being restricted by the threshold effect of internet development. The development of digital financial inclusion mainly affects economic growth through promoting entrepreneurship in small and medium-sized enterprises and stimulating residents' consumption.