Does the Development of Digital Inclusive Finance Promote the Construction of Digital Villages?—An Empirical Study Based on the Chinese Experience

The degree of the effect of digital inclusive finance on the construction of China’s digital villages and the mechanism of action is investigated in this study by matching the digital inclusive finance index in accordance with a data sample of China’s provincial digital villages from 2013 to 2020. As indicated by the result of this study, first, the development of digital inclusive finance positively expedites the development of digital villages. Second, geographical and dimensional differences exist when digital inclusive finance boosts the construction of digital villages. Third, digital inclusive finance is capable of facilitating the construction of digital villages by deepening technological innovation and communication infrastructure construction and further enhancing the digital literacy of residents. Fourth, a positive moderating effect of internal conditions of rural residents’ consumption and external conditions of financial regulation is reported when digital inclusive finance promotes digital rural development. Based on the above-mentioned findings, the following policy recommendations are presented to advance digital countryside construction in depth. First, following the goal of building Chinese modernization, differentiated policies, with regional resource endowments, social conditions, and rural characteristics considered, should be implemented in accordance with local conditions. Second, the digitalization process in rural areas should be vigorously boosted, and it is imperative to optimize and upgrade mobile communication infrastructure, with the aim of injecting new momentum into China’s digital countryside construction. Third, investment in scientific and technological research and development funds and high-level innovative talents should be increased to endow digital technology with better independent innovation capacity and facilitate the level of innovation. Fourth, investment in education should be increased to enhance the digital literacy of urban and rural residents.