A Study on the Impact of Digital Inclusive Finance on Systemic Financial Risk
DOI:
https://doi.org/10.62177/apemr.v3i4.1572Keywords:
Digital Inclusive Finance, Systemic Financial Risk, Spatial Agglomeration, Regional HeterogeneityAbstract
Against the backdrop of global economic restructuring and China’s financial liberalization, digital inclusive finance has a complex dual impact on regional systemic financial risk. The nexus between digital inclusive finance and systemic risk are investigated via the CRITIC method, Theil index decomposition, fixed-effects regression, heterogeneity analysis, and mediation tests in the paper, by using a panel of 31 Chinese provinces from 2014 to 2025. Results show that systemic risk and digital finance development differ significantly across regions. Digital inclusive finance exhibits a significant U-shaped effect on systemic risk: it reduces risk initially but increases risk accumulation beyond a threshold. This effect is significant in eastern and northeastern regions but insignificant in central and western regions. Capital transfer mediates 27.14% of the total effect, and systemic risk shows significant spatial agglomeration. A region-specific risk monitoring system to safeguard financial stability and high-quality development in the Asia-Pacific is proposed.
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Copyright (c) 2026 Jiali Tian, Junxiang Lu, Yuqing Zhang
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