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Digital Financial Inclusion and Economic Growth: Multi-Dimensional Evidence from Coverage, Depth, and Digitisation

Year: 2026

Type: article

Abstract: Using panel data from 278 Chinese cities during 2011–2019, this study examines how digital financial inclusion (DFI) affects economic growth through capital deepening, total factor productivity, and technological innovation. The results reveal substantial heterogeneity across DFI dimensions. Expansion of coverage breadth significantly and robustly promotes city-level economic growth. In contrast, greater usage depth exerts a negative effect, possibly due to regulatory lags in internet credit and insurance that intensify financial risks. The digitisation level shows a positive but statistically insignificant impact, indicating that digital infrastructure has not yet been fully transformed into growth-enhancing productivity. These findings suggest that policy efforts should prioritise broadening DFI coverage while strengthening regulation of usage-related activities, thereby balancing financial innovation with systemic stability.

Source: Journal of risk and financial management

DOI: 10.3390/jrfm19040284

Authors: Shancheng Hu, Weiyi Xiang, Yichao Wan

Institutions: Ningbo University, University of Szczecin

Language: English

Topic: FinTech, Crowdfunding, Digital Finance

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $1,689