Can digital finance drive urban–rural integration?

Yunping Hao, Bing Zhang and Hongfei Yin

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 2, 2169736

Abstract: Financial services are an essential source of capital and play a crucial and significant role in urban–rural integration. We analyse empirically the effect of digital finance on urban–rural integration and its mechanism using provincial panel data in China for 2011–2020. The results indicate that digital finance contributes to urban–rural integration. Moreover, for every 1 standard deviation increase in digital finance development, the degree of urban–rural integration increases by 7.7% on average, and it is more evident in China’s eastern regions, with regional heterogeneity. The level of entrepreneurship can be a vital channel for digital finance to facilitate urban–rural integration. The mechanism of action of digital finance to facilitate urban–rural integration by improving entrepreneurship levels is primarily revealed in the group with lower levels of human capital, which exhibits certain inclusive characteristics. This study is conducive to developing a policy for promoting the free flow of resources between urban and rural areas and advancing urban–rural integration.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2023.2169736 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:36:y:2023:i:2:p:2169736

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2023.2169736

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().