The role of digital financial inclusion in promoting common prosperity: Evidence from Inner Mongolia

Abstract

Inner Mongolia is a multiethnic border region in China that faces challenges in achieving common social prosperity due to regional developmental imbalances and cultural differences. Digital financial inclusion , which leverages digital technology to break down regional barriers, offers a feasible method of addressing these issues, but little-to-no research has been produced in this area. Hence, this study uses digital financial inclusion index data from 12 cities, spanning 2013–2022, to construct a regional common prosperity index. Then, spatial econometric methods are applied to systematically analyze the impact of digital financial inclusion and its subdimensions on common prosperity. The findings indicate that a significant positive impact is provided, along with positive spatial spillover effects . Heterogeneity analysis reveals that the impact varies across dimensions and regions, which allows for strategy recommendations for strengthening cross-regional integration and sharing digital financial services . Thus, practical insights and policy recommendations are provided.