The Impact of Digital Financial Inclusion on Regional Green Innovation Research: Empirical Evidence from 281 Prefecture-level Cities in China

Mengna Wang; Xingchao Ma

doi:10.54097/8vm40q23

Authors

Mengna Wang
Xingchao Ma

DOI:

https://doi.org/10.54097/8vm40q23

Keywords:

Digital inclusive finance; green innovation; entrepreneurial activity; financing constraints; industrial structure upgrading.

Abstract

Relying on green technological innovation and developing green technology is an important support for the green transformation of society. This paper empirically analyzes the impact and mechanism of digital finance on green innovation by comprehensively applying fixed effect model, multiple linear regression and mediation effect model. The results show that digital inclusive finance can significantly incentivize green innovation, and the conclusions remain robust after multiple robustness tests. The mediation effect analysis shows that digital inclusive finance can enhance entrepreneurial activity, promote industrial structure optimization and alleviate financing constraints, and then promote the development of green innovation. Heterogeneity analysis shows that heterogeneous factors such as the size of the non-state economy, environmental regulations, and distance from Hangzhou make significant differences in the impact of digital inclusive finance on regional green innovation. Therefore, the application of digital inclusive finance in the field of green innovation should be strengthened, digital inclusive finance supporting equipment and systems should be vigorously constructed and improved, digital inclusive finance development strategies should be formulated according to local conditions, and other factors should be coordinated to play a role in conjunction with digital inclusive finance in order to guide green transformation.

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