Research on the effects of digital inclusive finance on the efficiency of financial resource allocation

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Abstract
With the rapid progress of digital technology, finance has also embarked on the fast lane of its development. Whether and how the development of digital inclusive finance can improve the efficiency of financial resource allocation have both been significant questions for the Chinese government to answer. This study adopted the super-efficiency DEA method to measure the allocation efficiency of regional financial resources in China, integrating with the Digital Inclusive Finance (DIF) index published by the Digital Finance Research Center of Peking University, to study the influences of Digital Inclusive Finance on the Financial Resource Allocation Efficiency (FRAE). After considering the spatial factors, we found that the development of DIF could significantly promote Financial Resource Allocation Efficiency mainly in three aspects of coverage, depth, and credit. Meanwhile, in the analysis of its mechanisms, we also discovered that DIF could promote FRAE through human capital and enterprise innovations. Finally, this study indicated that the differences in regions and overcapacity levels would also modify the influences of DIF on FRAE. The enlightenment from this study is that relevant government departments should actively promote the development of digital inclusive finance, thereby, not only improving the efficiency of financial resource allocation and the coordinated action between regions but also promoting the transformation and upgrade of economic development methods.

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