Digital Financial Inclusion and Entrepreneurship: A Spatial Analysis of Rural China

Wenyi Lyu, Chenlu Hao and Leng Yu

Review of Development Economics, 2026, vol. 30, issue 2, 1383-1399

Abstract: This paper examines how digital financial inclusion (DFI) in both local and neighboring regions contributes to entrepreneurial activities in China, with a focus on spatial interactions. The findings reveal that DFI significantly boosts business creation within local counties and promotes growth in neighboring areas through synergies with the transportation network. Marginal effects analysis shows a 1.21% direct effect and a 0.74% indirect effect on enterprise growth. DFI particularly supports businesses in agriculture, forestry, animal husbandry, and fisheries, with the Eastern region experiencing the greatest benefits.

Date: 2026
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