Evaluation of the coupling coordination degree between digital inclusive finance and green technology innovation in China.

Abstract

Digital inclusive finance (DIF) has been growing fast in recent years in China, and green technology innovation (GTI) is strongly promoted by the Chinese government. The coordinated development of DIF and GTI is important for China's economic transition to high-quality development. Therefore, utilizing the panel data of 288 prefecture cities from 2011 to 2020 in China, the research evaluates the coupling coordination degree between DIF and GTI (CCD-DG), analyzes spatial-temporal characteristics of CCD-DG, explores its regional disparities and finally analyzes its spatial effects. Results demonstrate that CCD-DG at the prefecture-city level showed a rise from 2011 to 2020, but the degree was only in the stage of basic coordination till 2020, which was mainly driven by the development of DIF in recent years. The regional disparities in CCD-DG remarkably existed but gradually narrowed down during the observation period, which mainly originated from the between-subregions differences as a result of the huge difference in GTI. Additionally, there was a significant spatial spillover effect of CCD-DG and its spatial distribution was roughly consistent with the spatial effect layout. Policy implications based on these results are finally proposed, including formulating policies with local characteristics to promote CCD-DG, emphasizing the discrepancies of CCD-DG between the East and the Northwest, and that within the Northwest and the South, etc.