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ORIGINAL RESEARCH
Matthew or Diffusion Effect: Impact of Digital
Finance on Green Innovation Gap?
1
School of Economics and Management, Anhui University of Science and Technology,
No. 168 Taifeng Road, Huainan 232001, Anhui, Peoples R China
2
Mining Enterprise Safety Management of Humanities and Social Science Key Research Base in Anhui Province,
No. 168 Taifeng Road, Huainan 232001, Anhui, Peoples R China
3
Economics and Management School, Dongguan University of Technology, No. 1 University Road,
Dongguan 523808, Guangdong, Peoples R China
Submission date: 2024-05-08
Final revision date: 2024-08-16
Acceptance date: 2024-09-21
Online publication date: 2025-01-22
Publication date: 2025-11-04
Corresponding author
Chenhui Ding
Economics and Management School, Dongguan University of Technology, No. 1 University Road, Dongguan 523808, Guangdong, Peoples R China
Economics and Management School, Dongguan University of Technology, No. 1 University Road, Dongguan 523808, Guangdong, Peoples R China
Pol. J. Environ. Stud. 2025;34(6):7437-7455
KEYWORDS
TOPICS
ABSTRACT
Digital finance can revolutionize the financial system and bridge the gap between urbanization
and green innovation. This study provides novel insights into how digital finance influences regional
green innovation disparities in China, using panel data from 284 prefectures (2011-2020). The findings
indicate that (1) regional green innovation experiences a “Matthew effect” of digital finance, with notable
variations in structure. This conclusion is robust to instrumental variable and difference-in-differences
tests. The “Matthew effect” shows a dynamic superposition effect with a diminishing marginal
effect in the time dimension. (2) Mechanism analysis suggests that while digital finance weakens the
“Matthew effect” by reducing financing restrictions and capital mismatch, it widens the regional green
innovation gap by promoting market demand, innovation, and entrepreneurial vigor. (3) Heterogeneity
analysis shows that the “Matthew effect” of digital finance on the green innovation gap is more
evident in cities with weak commercial charm. (4) Effective governance, including entrepreneurship,
intellectual property protection, and financial regulation, is crucial for mitigating the “Matthew effect.”
This study provides insights into the complex relationship between digital finance and regional green
innovation disparities, offering valuable implications for policymakers seeking to foster the harmonious
development of regional green innovation.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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| eISSN: | 2083-5906 |
| ISSN: | 1230-1485 |
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