The Impact of Digital Industrial Co-Agglomeration on Digital Financial Inclusion

Although past studies indicate that Digital Industrial Co-Agglomeration (DIC) might influence the Digital Financial Inclusion (DFI) level, there is a lack of empirical research on China. In the context of the accelerated penetration of the digital economy in China, this study examines the impact of DIC on DFI based on panel data from 29 provinces (municipalities) in China from 2012-2022. The two-way fixed-effects model and heterogeneity analysis are employed in the study. The results show that (1) Digital Industrial Co-Agglomeration (DIC) exerts a significantly positive impact on Digital Financial Inclusion; (2) its impacts vary across different dimensions of DFI, demonstrating a strong facilitating effect on Coverage Breadth (COBR) and Usage Depth (USDE) but a weaker or insignificant effect on Digitisation Level (DILE); (3) further analyses on regional heterogeneity reveal that the positive impact of DIC on DFI is more pronounced in the CNR than in the ER and WR. These findings provide an empirical basis for understanding the interaction between digital industries development and Digital Financial Inclusion, as well as policy insights for