PreprintArticleVersion 1Preserved in Portico This version is not peer-reviewed
Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China
Version 1
: Received: 10 April 2024 / Approved: 10 April 2024 / Online: 10 April 2024 (15:51:35 CEST)
How to cite:
Gong, X.; Zhao, L. Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China. Preprints2024, 2024040742. https://doi.org/10.20944/preprints202404.0742.v1
Gong, X.; Zhao, L. Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China. Preprints 2024, 2024040742. https://doi.org/10.20944/preprints202404.0742.v1
Gong, X.; Zhao, L. Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China. Preprints2024, 2024040742. https://doi.org/10.20944/preprints202404.0742.v1
APA Style
Gong, X., & Zhao, L. (2024). Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China. Preprints. https://doi.org/10.20944/preprints202404.0742.v1
Chicago/Turabian Style
Gong, X. and Liyu Zhao. 2024 "Whether the Financial Development Is Helpful to the Government Governance in Underdeveloped Regions——Empirical Evidence from 193 Counties in Five Provinces of Northwest China" Preprints. https://doi.org/10.20944/preprints202404.0742.v1
Abstract
Inclusive and sustainable development has become an important part of China's sustainable development agenda, the self-recovery and stability of China's economy cannot be achieved without the macro-governance of the government. Figuring out the internal logic of digital finance and economic resilience is an important part of effective government governance. Based on the panel data of 193 counties in five provinces in northwest China from 2014 to 2021, the paper tested digital finance and county-level economic resilience by using two-way fixed-effect model, intermediary-effect model and threshold-effect model, to test whether financial development promotes government governance in underdeveloped regions. The results prove that digital inclusive finance significantly enhances the resilience of county economies by improving capital allocation efficiency, stimulating entrepreneurship and employment, and reducing pollution emissions. In addition, there are dual threshold effects between capital allocation efficiency and employment vitality, in which capital allocation efficiency has a gradually increasing threshold effect, and entrepreneurship and employment vitality have a fluctuating increasing threshold effect. Therefore, "Digital inclusive finance" in underdeveloped regions is an indispensable part of financial globalization；promoting the healthy development of digital finance is the basis and premise for providing a good financial environment for government management; deepening the reform in the financial field and promoting the green and sustainable development of finance are the future trend and direction of efforts.
Keywords
Digital Finance; government governance; economic resilience; resource allocation efficiency; entrepreneurial employment vitality
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
