The Spatial Spillover Effect of Digital Inclusive Finance on the Comprehensive Level of Regional Economic Development

Abstract

This study investigates the spatial spillover effects of digital inclusive finance on the comprehensive level of regional economic development, utilizing panel data (434 observations) from 31 provinces in China spanning 2011 to 2024. By integrating nine indicators from three dimensions—economic vitality, consumption potential, and urbanization level — through the entropy weight method, a comprehensive level index of regional economic development is constructed. Moran's I index is used to test spatial correlation, and the spatial Durbin model (SDM) is used for empirical analysis. The results show that the comprehensive level of regional economic development is significantly spatially positively correlated with digital inclusive finance and continues to strengthen. The highvalue areas gradually extend from the eastern coastal areas to midwestern provinces such as Anhui and Jiangxi. Digital inclusive finance has a significant positive impact on the overall level of economic development in the local region, and there is a significant positive spatial spillover effect on neighboring regions. The spillover effect on consumption potential is the strongest among them. There is regional heterogeneity in spillover effects, with spillover intensity in eastern provinces higher than in midwestern provinces. However, from 2021 to 2024, the improvement of digital infrastructure in midwestern provinces significantly enhances absorption capacity, and the regional gap gradually narrows.