 Joint effect of digital transformation and bank branch establishment on rural economic growthNan Zhou, Ruohan Sun, Yuan Li and Longyao Zhang Research in International Business and Finance, 2025, vol. 75, issue C Abstract: Using a panel fixed effects model based on panel data from 2012 to 2020, this study evaluates how bank branch establishment and digital transformation (DX) impact rural economic growth. Our findings indicate that bank branches establishment enhances rural economic growth; however, this effect is constrained by physical distance. Post-DX, the influence of bank branches establishment on economic growth intensifies, promoting local economic development and extending services to distant areas, thus narrowing regional economic disparities. Notably, national banks’ DX has a more significant effect on rural economic growth than that of regional banks. Our findings indicate that despite the advancements in DX, bank branches continue to positively contribute to economic growth. This finding provides some direction for subsequent financial policy reforms, such as whether bank branches are still needed. Keywords: Bank branches; Bank digital transformation; Economic growth; Financial inclusion; Digital technology (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531924005312 DOI: 10.1016/j.ribaf.2024.102738 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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