The impact of digital finance on the social governance capacity

As social governance evolves, the emphasis is shifting towards integrating technological applications, notably digital finance, which enhances social governance capacity. This article constructs a social governance capacity indicator system and conducts regression estimation based on China's provincial panel data from 2011 to 2022. The results indicate that digital finance has a discernible impact on social governance capacity, with this impact being contingent upon the degree of regional openness to external influences. Furthermore, information processing capacity and technology application capacity serve as a conduit between the two.