The Spatial Effects of Digital Finance: Implications for Economic Growth, Regional Development, and Financial Inclusion

Digital finance, which offers financial services that go beyond conventional geographic limitations, has become a disruptive force in economic progress. The spatial implications of digital finance on income inequality, regional disparities, and economic growth are examined in this research. By encouraging entrepreneurship, improving consumption patterns, and supporting green technical developments, digital financial inclusion stimulates economic growth. However, its effects differ depending on the location and are impacted by elements including financial literacy, legal frameworks, and technology infrastructure. Digital money has significant spillover effects, according to spatial econometric research. It stimulates economic growth in the surrounding areas, but if access remains unequal, it could worsen conditions in some areas. Additionally, by improving financial accessibility for underserved groups, digital money plays a critical role in reducing poverty. Notwithstanding its promise, in order to guarantee fair economic gains, we need to address issues including disparities in digital literacy, cybersecurity worries, and inconsistent regulations. Future studies should examine how digital finance evolves geographically, paying particular attention to how various regions differ and how to facilitate sustainable development and financial inclusion.