Revisiting the nexus between digital inclusive finance and rural revitalization: New evidence from Chinese municipal data

Recently, digital inclusive finance and rural revitalization are hot topics among academic and official groups in China. In this paper, we examine the impact of digital inclusive finance on the revitalization of the countryside using municipal-level panel data from 2011 to 2023. Endogeneity issues are dealt with by using instrumental variables in a quantitative analysis. From the results, we can see that the effects of digital inclusive finance on promoting the revitalization of rural areas mainly come out through the paths of improving technological innovation and upgrading the industrial structure. Also, the impact is moderated by conventional financial growth and digital infrastructure. Heterogeneity analysis shows differences under varied policy contexts and development situations. Based on these findings, some place-based policy recommendations are put forward to strengthen the effect of digital financial inclusion in promoting rural revitalization. This helps to understand how digital inclusive finance works and gives real-world ideas for making and checking policies.