Unveiling nonlinear effects of Digital Inclusive Finance on urban-rural integration: A threshold panel analysis of China.

ABSTRACT: This paper examines the nonlinear effects of Digital Inclusive Finance (DIF) on urban-rural integration (URI) using a provincial panel for mainland China (31 provinces, 2011-2023). We construct a multidimensional URI index and decompose DIF into coverage breadth (D1), usage depth (D2) and digitalization level (D3). Estimation proceeds with two-way fixed-effects models and Hansen-style panel threshold regressions with bootstrap inference; robustness checks include placebo tests and instrumental-variable specifications. The evidence shows that DIF's impact on URI is regime-dependent: marginal returns are limited at low development levels but increase sharply once DIF and complementary institutional conditions cross empirically identified thresholds. Disaggregation reveals that usage depth (D

SUBMITTER: Song Y 

PROVIDER: S-EPMC12923127 | biostudies-literature | 2026

REPOSITORIES: biostudies-literature