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

Chang Xie and Chuanzhe Liu
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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

Sustainability, 2022, vol. 14, issue 12, 1-20

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.

Keywords: digital finance; financial resource allocation; SMEs; mediation effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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