The Coordinated Development of Digital Inclusive Finance and the Real Economy: A Pathway to Common Prosperity

While existing literature has extensively examined the bilateral relationships between digital inclusive finance (DIF), the real economy (TRE), and common prosperity (CP) in isolation, the synergistic effect of DIF-TRE coordination remains a critical gap. Based on panel data from 278 Chinese cities (2011–2023), this study develops an integrated analytical framework by constructing a novel coupling coordination degree index to measure DIF-TRE coordination and empirically investigates its impact on CP. Results reveal that this coordination significantly promotes CP, a finding robust to endogeneity concerns and robustness tests. Crucially, we unpack the underlying mechanisms through technological innovation, industrial structure upgrading, and regional entrepreneurial activity. Furthermore, we uncover significant regional heterogeneity, with effects more pronounced in eastern and large cities, and provide novel evidence of significant positive spatial spillover effects, demonstrating that a city’s DIF-TRE coordination level positively impacts CP in neighboring regions. These findings move beyond the prevailing bilateral paradigm, offering a more systemic explanation and targeted policy insights for achieving CP through DIF-TRE coordination.