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The Nexus between Digital Finance and High-Quality Development of SMEs: Evidence from China

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  • Chang Xie

    (School of Management and Economy, China University of Mining and Technology, Xuzhou 221116, China)

  • Chuanzhe Liu

    (School of Management and Economy, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

In the context of digital finance and based on the characteristics of the high-quality development of SMEs in China, this paper investigates the influence of digital finance on the high-quality development of SMEs and explores their mechanism of influence. A panel econometric model and mediation model are used to evaluate the data of 581 SMEs in China from 2011 to 2020. The results show that digital finance has a significant role in promoting the development quality of SMEs. Heterogeneity analysis shows that the promotion effect of digital finance is more obvious in central and western regions, non-heavy pollution industries and non-state-owned SMEs than that of other SMEs. Further analysis shows that digital finance improves the efficiency of financial resource allocation, which in turn promotes the high-quality development of SMEs. After applying a test of robustness, the results proved significant.

Suggested Citation

  • Chang Xie & Chuanzhe Liu, 2022. "The Nexus between Digital Finance and High-Quality Development of SMEs: Evidence from China," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:7410-:d:841023
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    References listed on IDEAS

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    2. Mengyao Liu & Yan Hou & Hongli Jiang, 2023. "The Energy-Saving Effect of E-Commerce Development—A Quasi-Natural Experiment in China," Energies, MDPI, vol. 16(12), pages 1-22, June.

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