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Purpose

This paper investigates how digital finance (DF) influences high-quality development (HQD) in China. It aims to systematically assess the direct effects, non-linear threshold effects and transmission mechanisms.

Design/methodology/approach

The study uses a panel of Chinese cities (2011–2020) and employs multi-dimensional fixed-effects models, mediation-effect models and threshold models to examine DF’s impact on HQD.

Findings

First, DF exerts a robust and stable positive effect on regional HQD, Second, DF, coverage breadth (DF1), usage depth (DF2) and degree of digitalization (DF3) exhibit a marginally increasing positive impact on HQD, Third, the principal channels through which DF promotes HQD are factor allocation structure, industrial development level, innovation capacity and consumption level.

Originality/value

This study provides theoretical and empirical support for coordinated policy design linking DF, structural economic reforms and HQD.

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