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The Impacts of Digital Finance on Economic Resilience

Author

Listed:
  • Xuxin Zou

    (School of Economics, Beijing Wuzi University, Beijing 101149, China)

  • Wenguan Dai

    (School of Economics, Beijing Wuzi University, Beijing 101149, China)

  • Shuang Meng

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 102206, China)

Abstract

Enhancing economic resilience is crucial to sustainable development. However, issues such as resource misallocation and financing difficulties have severely impacted supply chain stability and security. The rise of digital finance presents potential solutions to these problems. Based on panel data from 30 provinces in China from 2011 to 2020, this study explores the mechanisms and pathways through which digital finance enhances economic resilience. The results reveal four key findings. First, the development of digital finance significantly enhances economic resilience by improving innovation capabilities and consumption vitality. Second, a high degree of marketization strengthens the promoting effect of digital finance on economic resilience. Third, in areas with higher levels of industrial advancement or lower levels of traditional financial development, the enhancement effect of digital finance on economic resilience is more significant. Fourth, digital finance significantly improved the economic resilience of geographically adjacent areas through spatial spillover effects. Overall, this study provides a new perspective on the impact of digital finance on economic resilience in developing countries such as China. In addition to its academic contributions, this study offers detailed practical implications.

Suggested Citation

  • Xuxin Zou & Wenguan Dai & Shuang Meng, 2024. "The Impacts of Digital Finance on Economic Resilience," Sustainability, MDPI, vol. 16(17), pages 1-21, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7305-:d:1463688
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    References listed on IDEAS

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