Does Digital Inclusive Finance Enhance the Creation of County Enterprises? Taking Henan Province as a Case Study

Abstract

The broad inclusiveness of digital inclusive finance is essential for promoting coordinated regional development. This paper focuses on the impact of digital inclusive finance on creating county enterprises, discussing its heterogeneity in terms of region and type of entrepreneurship and revealing the mechanisms by which this set of impacts works. The methodology integrates the 2015–2020 Peking University Digital Inclusive Finance Index, business registration data from the industrial and commercial sectors and statistics from counties in Henan Province. The results show that digital inclusive finance can significantly promote the creation of county enterprises. All secondary dimension indices show positive effects; this result remains when replacing the core explanatory variables and lagged terms. Heterogeneity analysis finds no significant heterogeneity in the entrepreneurial effect of digital inclusive finance between urban and rural areas and types of entrepreneurship. The mechanism analysis finds that digital inclusive finance can promote the creation of county enterprises through two paths: improved financing and mobile payment. These findings reveal that we should use digital inclusive finance to improve the breadth and depth of financial services within the county and take advantage of its mobile payments to promote micro and small businesses.

Modified CPT-TODIM method for evaluating the development level of digital inclusive finance under probabilistic hesitant fuzzy environment

“…However, the cost of risk identification, credit records and data acquisition for inclusive finance is high, and the general approach adopted by traditional inclusive finance is often difficult to balance the endogenous requirements of accessibility, affordability, comprehensiveness and commercial sustainability, so for inclusive finance to achieve long-term development, it also needs to find a new breakthrough, so the technology based on digital technology, mobile Internet, cloud computing, artificial intelligence, etc. Digital inclusive finance was born [68][69][70]. Technological progress is an important force to promote financial innovation.…”

Impact of Digital Financial Inclusion on Rural Revitalization in Tanzania

“…The traditional types of financial products and service modes have been altered by the digital inclusion of finance, which has also promoted the modernization and upgrading of rural businesses, provided financial support for enterprise innovation and R&D, and enhanced rural areas' innovation. Digital inclusive finance can encourage the creation of county enterprises through improved financing and mobile payment [36]. Deepen local advantages, build a mobile financial network system, and promote industrial integration.…”

Digital Finance and Commercial Banks' Risk

“…The index contains ten consecutive years of index data from 2013 to 2022, and the higher the digital finance index, the higher the level of digital finance development in the region. In the benchmark regression part of this paper, referring to the study of Liang et al (2022), provincial-level data are used, and in the robustness test part, municipal-level data are used, and the index is divided by 100 to solve the magnitude problem.…”