Role of Digital Inclusive Finance for High-Quality Business Development: A Study of China’s “Five Development Concept” Policy

Ruixin Su, Tong Zheng (), Yuzhao Zhong and Weizhou Zhong
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Ruixin Su: School of Economics and Management, Chang’an University, Xi’an 710064, China
Tong Zheng: School of Economics and Management, Chang’an University, Xi’an 710064, China
Yuzhao Zhong: Xi’an Branch of SPD Bank, Xi’an 710064, China
Weizhou Zhong: Shaanxi Institute of Socialism, Xi’an 710064, China

Sustainability, 2023, vol. 15, issue 15, 1-21

Abstract: The “Five Development Concept” policy is the foundation of high-quality development in China, and enterprises should base their high-quality development on this new paradigm. Can digital inclusive finance play a vital role in the high-quality growth of those businesses? This paper examines the relationship between digital inclusive finance and high-quality corporate development and its mechanism of action. This study demonstrates that digital financial inclusion can facilitate high-quality business development. Heterogeneity analysis shows that the contribution of digital inclusion to high-quality businesses development is more evident among non-state, large growth capacity and small-scale enterprises. An investigation of the mechanism reveals three pathways through which high-quality enterprise development is facilitated via digital inclusive finance, namely improving innovation, easing financing constraints, and improving risk taking, and a triple internal drive mechanism of innovation, capital, and risk is extant. This paper enhances the research related to the micro-level of digital inclusive finance on the high-quality development of enterprises, which is conducive to the construction of a long-term mechanism of digital inclusive finance under the new development pattern, so as to effectively facilitate the high-quality development of enterprises in developing countries.

Keywords: digital inclusive finance; high-quality business development; “Five Development Concept”; mechanism (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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