Digital finance and the nighttime economy: Novel evidence from nighttime light data and financial attention in China

As a vital instrument for stimulating consumption, the nighttime economy has emerged as a critical driver of high-quality economic development. This study examines the relationship between digital finance and the nighttime economy using panel data from 31 Chinese provinces between 2011 and 2023, employing the two-way fixed effect model and regression discontinuity design. The findings reveal that digital finance and its sub-dimensions significantly promote the development of the nighttime economy. Meanwhile, this impact shows significant positive spatial spillover effect. Financial attention across three distinct agents moderates the relationship between digital finance and the nighttime economy. Specifically, government financial regulation and corporate financial competition exhibit inhibitory effects, whereas public financial literacy exhibits a promotive effect. The relationship exhibits heterogeneity across provinces with varying geographical locations, levels of financial human resources, and periods preceding and following key financial policy implementations. Moreover, the impact of digital finance on the nighttime economy exhibits a significant shift in 2017, related to G20 High-Level Principles for Digital Financial Inclusion. This study deepens the mechanistic understanding of the relationship between digital finance and the nighttime economy, providing valuable empirical evidence to inform governmental financial policymaking.