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The expansion of the breadth of coverage and depth of use of digital finance greatly improves the efficiency of financial services to the real economy, and has an important impact on the economic development of local governments in China. This paper takes the provincial local government debt risk data from 2011 to 2020 as the research sample to deeply investigate the effect and mechanism of digital finance on local government debt risk. The results show that, firstly, digital finance can effectively suppress local government debt risk, and a significant long-term suppressive effect is found by quantile model test. Secondly, in the mechanism of action test, digital finance effectively alleviates local government debt risk through the path of local government fiscal transparency, and has played a significant regulating effect. Finally, based on different regions and development levels, the effect of digital finance on local government debt risk is found to be more significant in eastern regions and regions with high urbanization levels. The findings of this paper provide some theoretical value and practical significance for preventing the occurrence of local government debt risk and regional systemic risk. [ABSTRACT FROM AUTHOR]

In the context of a unified large market, the development of digital economy has become the focus. Based on the panel data of 31 provinces in China from 2011 to 2020, this paper uses the spatial Durbin model to examine the impact of government spending on digital economy through different spatial weight matrices. The research results show that: 1) The government science and technology expenditure in all provinces in China has a significant positive spatial correlation with the level of digital economy development; 2) The comparative analysis of different weight matrices show that the impact of local government science and technology expenditure on the level of digital economy development is significant and positive, and there is a certain spatial spillover effect; 3) Through the heterogeneity test, the spillover effect of the central and western regions of China is more obvious under the setting of the geographical weight matrix, and the spillover effect of the east is more obvious under the setting of the economic matrix weight. At the same time, this study expands the research on the influencing factors of the development level of the digital economy, and puts forward policy recommendations corresponding to government science and technology expenditure and the development of the digital economy based on the empirical results. [ABSTRACT FROM AUTHOR]

To further promote the theoretical research on digital finance's effective support for highquality development of the real economy, this paper reviews the current status of domestic and foreign research on the impact mechanism of digital finance on the real economy and the impact mechanism of digital finance on economic growth. At present, domestic and foreign research on the impact mechanism of digital finance on the real economy mainly includes the basic transmission mechanism featuring the improvement of financing availability and guiding the flow of funds in the real economy, and the indirect transmission mechanism using innovation and R&D as a channel. Domestic and foreign research on the impact mechanism of digital finance on economic growth mainly includes: the direct impact mechanism featuring the improvement of financial services universality and efficiency, and the indirect impact mechanism with resident consumption, innovation and entrepreneurship, industrial structure transformation, and business environment as the channels. Future research directions include: deepening the research on the indirect transmission mechanism of digital finance to the real economy; expanding the research on the indirect impact mechanism of digital finance on economic growth. [ABSTRACT FROM AUTHOR]