.... (3) Digital financial inclusion enhances agricultural modernization by alleviating information asymmetry, improving financial service accessibility, boosting agricultural productivity and optimizing resource allocation efficiency. Originality/value The contributions of this paper are as follows...

... these relationships quantitatively. Findings Digital inclusive finance fundamentally mitigates systemic risk by enhancing resource allocation efficiency – a mechanism particularly potent under strong financial regulation. Empirically, China’s city-level data confirm a significant risk mitigation effect...

... and government should be reasonably defined and markets play a decisive role in resource allocation to improve corporate innovation and national innovation. Originality/value This paper provides a micro view of the relationship between market and government at the stage of transitional economy in China...