Cultural Diversity and Digital Finance: An Empirical Study of Dialect

This study utilizes data from China to investigate the effects of cultural diversity on digital finance. Empirical results show that a one-unit increase in dialect density is associated with a 1.9% decrease in digital finance development. This relationship remains robust when instrumenting with the number of historical wars. The study further suggests that promoting internet access, education, and openness can help emerging economies reduce cultural barriers, foster social trust, and support digital financial growth. These findings highlight the importance of cultural integration in building a sustainable environment for digital finance in developing regions.