Abstract
The United Nations’ 2030 Agenda for Sustainable Development aims to promote inclusive and sustainable economic growth and encourage the formalization and growth of micro, small, and medium enterprises through access to financial services. This study examines the impact and mechanism of the digital financial inclusion on the sustainable growth of small and micro enterprises in China. For this purpose, it uses the data from China’s New Third Board Market listed companies from 2011 to 2018 and the digital financial inclusion index of Peking University. The results show that the development of digital financial inclusion helps promote the sustainable growth of small and micro businesses, particularly in private, high-tech industries, and competitive markets. The impact mechanism of this development prevents any financial crisis caused by the capital structure imbalance and capital liquidity problems of small and micro enterprises by alleviating the financing constraints, thus promoting their sustainable growth. The research results show that, under the background of high-quality development of China’s economy, continuous promotion of digital financial inclusion and reshaping of the ecological pattern of the financial industry can provide steady financial support for the sustainable growth of small and micro enterprises, and realize the healthy development of micro enterprises and macro economy.
Highlights
Since 2014, China’s economic development has entered a new normal stage with “medium-high speed growth as the basic feature, comprehensive and sustainable social development as the orientation.” As the new force of China’s economy and social development, small and micro enterprises are important forces to achieve sustainable economic growth and promote inclusive economic development
The regression results of the second stage show that the Digitalfin coefficient is 0.053, which is significantly positive at the 5% level, indicating that digital financial inclusion can significantly promote the sustainable growth of small and micro enterprises, which is completely consistent with the previous results
Our study has investigated the impact of digital financial inclusion in China on the sustainable growth of small and micro businesses
Summary
Since 2014, China’s economic development has entered a new normal stage with “medium-high speed growth as the basic feature, comprehensive and sustainable social development as the orientation.” As the new force of China’s economy and social development, small and micro enterprises are important forces to achieve sustainable economic growth and promote inclusive economic development. To this end, this study uses data from of the companies listed on China’s New Third Board Market from 2011 to 2018 and the digital financial inclusion index of Peking University. It is the first to examine the heterogeneous impact of digital financial inclusion on the sustainable growth of small and micro businesses in different property rights, high-tech properties, and competitive markets, providing detailed empirical evidence for integration of finance and the real economy, and making reasonable sustainable growth decisions. The second part is literature review and research hypothesis; the third part is research design, which describes the samples, variables, and models; the fourth part is baseline regression analysis, heterogeneity analysis, endogeneity test, and robustness test; the fifth part is the analysis of action mechanism; and the sixth part is the summary
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