Can digital finance narrow the regional disparities in the quality of economic growth? Evidence from China

This research applies the Data Envelopment Analysis-Slack Based Measure (DEA-SBM) model and Global Malmquist–Luenberger (GML) index to estimate the quality of economic growth (QEG) in 30 provinces of China during the period 2011–2019. The results are that both digital finance and QEG have significant temporal and spatial differentiation characteristics. Moreover, the regional disparities of digital finance show a significant decline, and the regional disparities of QEG exhibit an upward trend. In terms of research methods, the relational data analysis paradigm and the quadratic assignment procedure help examine the impact of various factors, including digital finance on the regional disparities in QEG. The findings cover the following four aspects. First, from the perspective of the full sample, the regional disparities of digital finance have a negative effect on the regional disparities of QEG. The influence of the narrowing regional disparities of digital finance on widening the regional disparities of QEG is realized by widening the regional disparities in technological progress. The regional disparities of the coverage breadth and usage depth of digital finance have a negative effect in the regional disparities of QEG. Among the factors, marketization is the primary factor affecting the regional disparities of the QEG. Second, during the ‘12th Five-Year’ and ‘13th Five-Year’ periods, the regional disparities of digital finance have played a negative role on the regional disparities of QEG, but the impact intensity is lower. Third, narrowing regional disparities of digital finance can expand regional disparities of QEG in the east and central regions. Finally, in terms of different years the role of digital finance in regional disparities of QEG demonstrates a downward trend. This study has important academic and practical significance for the sustainable development of China’s economy and has theoretical and practical implications for the formulation and implementation of digital finance related policies in the future. It also provides a basis for narrowing the regional disparities in QEG in China and for promoting regional coordinated development.