Abstract:
Promoting the equalization of basic public services is an important aspect of achieving common prosperity. The development of digital inclusive finance can directly and indirectly expand the supply of basic public services. Based on the spatial spillover characteristics of basic public services, the potential spatial interaction mechanisms between the development of digital inclusive finance and the equalization of basic public services were analyzed. Using provincial panel data from 2011 to 2021, the spatial interactions between digital inclusive finance development and basic public service equalization were empirically tested through models such as spatial simultaneous equations. The results reveal that within regions, there is a significant positive mutual promotion effect between digital inclusive finance development and basic public service equalization. Between regions, however, there is a negative spatial interaction effect, mainly manifested in the negative spatial spillover effect of neighboring regions' basic public service equalization on local digital inclusive finance development. Similarly, the development of digital inclusive finance in neighboring regions also has a significant negative spatial spillover effect on local basic public service equalization. Based on these findings, it is recommended that while efforts should be made to promote local digital inclusive finance development and basic public service equalization, greater attention should be paid to the coordinated regional development of both, reducing the negative interaction effects between them.