How Digital Inclusive Finance Affect the Exports of Small and Medium Enterprises: Based on Growth Enterprise Market Data in China

Using a sample of China’s Growth Enterprise Market listed firms over 2011 to 2020, this study combines firm level information with the Peking University Digital Financial Inclusion Index to evaluate how digital inclusive finance (DIF) affects small and medium sized enterprises (SMEs) export performance. We also examine whether the relationship operates through two channels, the alleviation of financing constraints and the enhancement of technological innovation. The empirical results show that DIF significantly increases SMEs’ exports. Mechanism analysis shows that DIF improves export outcomes by expanding access to finance, reducing financing costs, and enhancing financing efficiency, which helps ease financing constraints. It also promotes exports through digital attributes that strengthen innovation capacity by increasing innovation investment and improving innovation decisions, which in turn raise exports. Heterogeneity analysis reveals differences by ownership and market environment, with more significant effects for larger SMEs and for firms located in less market-developed regions. Overall, the findings add micro level evidence on the trade implications of DIF and offer insights for policies aimed at improving financial services and for firms seeking to strengthen export performance.