The impact of digital finance on the social governance capacity

Mengzhi Xiong, Xuan Yang and Bihui Huang

Finance Research Letters, 2025, vol. 75, issue C

Abstract: As social governance evolves, the emphasis is shifting towards integrating technological applications, notably digital finance, which enhances social governance capacity. This article constructs a social governance capacity indicator system and conducts regression estimation based on China's provincial panel data from 2011 to 2022. The results indicate that digital finance has a discernible impact on social governance capacity, with this impact being contingent upon the degree of regional openness to external influences. Furthermore, information processing capacity and technology application capacity serve as a conduit between the two.

Keywords: Digital finance; Social governance capacity; Opening up (search for similar items in EconPapers)
JEL-codes: H11 O12 O18 P27 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000492

DOI: 10.1016/j.frl.2025.106784

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