The Impact of Digital Inclusive Finance on the Effectiveness of Industrial Structure Upgrading: An Empirical Analysis Based on Panel Data from 31 Provinces in China

Abstract

In the context of the accelerating global digitization process and the increasingly interconnected global economy, China is striving to establish a modern financial system that is innovation-led, data-enabled, and inclusive to all. This study, based on panel data from 31 provinces in China from 2013 to 2022, employs a two-way fixed effects model to delve into the impact of digital inclusive finance on the advancement and rationalization of industrial structure. The findings reveal that: (1) digital inclusive finance has a significant positive effect on the upgrading of industrial structure; (2) innovation investment plays a partial mediating role in this process; (3) there are notable regional differences in the impact of digital inclusive finance on industrial structure upgrading. Therefore, it is recommended that local governments formulate policies based on their respective realities, strengthen financial supervision and technological infrastructure construction, fully tap the potential of digital inclusive finance in promoting industrial structure upgrading, and promote the deep integration of financial resources and technological innovation to achieve continuous optimization and upgrading of the industrial structure.