Advances in International Finance

The growth of the rural economy is the cornerstone of ensuring social stability and sustainable development. From the perspective of digital inclusive financing, this article selects the county panel data from 2011–2022 and uses fixed impact models, mechanism testing models and threshold impact models to conduct multi-dimensional empirical studies on the impact of digital inclusive financing on rural growth. Research has shown that: (1) Digital inclusive financing has a significant positive impact on rural growth. (2) The mechanism test outcomes indicate that digital inclusive finance indirectly fosters rural economic growth by stimulating green innovation and enhancing peoples well-being. (3) Utilizing the threshold model, it is revealed that the influence of digital inclusive finance on the rural economy exhibits a non-linear characteristic of incrementally marginal growth. (4) According to the heterogeneity analysis, digital inclusive finance contributes to rural economic growth in both the eastern and western regions, with notable regional disparities. Specifically, the promotional effect is most pronounced in the western region, followed closely by the eastern region.Therefore, in order to promote the growth of the rural economy, it is necessary to strengthen the construction of digital inclusive financial infrastructure. At the same time, we should make full use of the exemplary role of developed regions in rural economic development, promote green innovation, and strive to improve peoples living standards to narrow the digital divide between different regions.

Digital financial inclusion; Rural economic growth; Green innovation; Improvement of peoples livelihood