Abstract
Against the backdrop of shrinking global demand and reduced expectations, the development of micro and small enterprises (MSEs) has attracted widespread attention. Based on 2017 and 2019 data from the China Household Finance Survey (CHFS), this paper examines the impact of digital transformation on the operating income of MSEs in China. The findings show that digital transformation significantly increases the operating income of MSEs by improving their access to credit. In addition, heterogeneity analysis indicates that the impact of digital transformation is more pronounced for MSEs in the growth stage and operating in central and western China.
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