Research On The Employment Effect Of Digital Inclusive Finance On The Tertiary Industry

Employment is the greatest livelihood.Promoting employment can promote economic development and maintain social stability.As the largest industry in China’s economic development,the tertiary industry has created a large number of jobs.Digital inclusive finance can expand the coverage of groups and provide financial services to promote employment for groups neglected by traditional finance.Studying its employment effect on the tertiary industry is of practical significance for alleviating employment problems.This paper first combs the relevant literature on the development of finance and inclusive finance,and then discusses the relationship between digital inclusive finance and the tertiary industry.Finally,it puts forward a hypothesis based on the analysis of reality.In the empirical part of the paper,the data of digital inclusive finance in prefecturelevel cities from 2011 to 2019 and the relevant data of 284 prefecture-level cities are used,and the two-way fixed effect model is adopted.The empirical results show that digital inclusive finance and its coverage breadth and use depth sub-index can significantly promote the employment of the tertiary industry.Then,instrumental variables will be introduced to alleviate the endogeneity problem.The regression is carried out by replacing explanatory variables and changing samples to ensure the robustness of the results.Finally,heterogeneity analysis and mechanism test are carried out for the promotion effect.It is found that digital inclusive finance has a significant effect in economically developed areas with large population,and can promote employment by increasing the economic scale of the tertiary industry and promoting innovation.Based on the regression results,this article puts forward three suggestions:increase the development of digital inclusive finance;strengthen the construction of digital infrastructure in backward areas;strengthen the support of digital inclusive finance to the producer service industry.