Does digital inclusive finance matter in sustainable tourism development at the county level? Evidence from the Wuling Mountain area in China

Abstract

As a new financial instrument under the strategy of digital economic development, digital inclusive finance has become an effective way to fill the market gap that exists in traditional finance. Inclusive financial resources are needed for tourism development and recovery in less‐developed regions, especially in the context of the COVID‐19 pandemic. Understanding the impact of DIF on tourism development is the key to promoting high‐quality economic growth in China. Although previous studies have explored the factors influencing tourism development, the effect of DIF on sustainable tourism development is still at its earlier stage and is not well researched. Therefore, this study aims to explore the direct impact of DIF on tourism development and examines whether there is threshold effect. Based on panel data from 63 counties in the Wuling Mountain Area, China, from 2014 to 2019, this research applied a series of panel regression models to explore whether the DIF can promote sustainable tourism development. The results indicate that the DIF plays a positive role in improving sustainable tourism development. Considering regions, types of counties, and different dimensions of the DIF, there are differences in positive effects of DIF on sustainable tourism development. The impact of DIF on tourism development is dynamic and non‐linear. Finally, practical implications for enhancing the promotion and development of DIF and achieving sustainable tourism development are discussed, particularly for less‐developed regions.