How Does Digital Finance Promote Regional Economic Growth?

The development of digital finance has important practical significance for regional economic growth. This article is based on the Digital Inclusive Finance Index developed by Peking University to study the impact of digital finance on economic growth in various regions of China, and uses the internet penetration rate at each provincial level as a tool variable to alleviate endogeneity issues in the model. Research has found that digital finance has a significant promoting effect on regional economic growth, and all three dimensions of digital finance have a positive impact on economic growth; Digital finance has shown some differences in the eastern, central, and western regions of China, with overall positive impacts, but its impact on economic growth in the eastern region is greater. This article provides an empirical basis for the development of digital finance in China, and provides a robustness analysis of digital finance promoting regional economic growth. Based on the current situation of digital finance development in China and the conclusions drawn in this article, it is believed that the construction of regional financial infrastructure should be accelerated, and the government should provide more financial resources for the central and western regions of China to narrow regional disparities, In order to better achieve the driving effect of digital finance on economic growth and regional coordinated development.