The study examines the impact of Government-Backed Financing Guarantee (GFG) programs on employment in small and medium-sized enterprises (SMEs) using data from the Zhejiang Guarantee Group and non-listed SMEs in China. The findings demonstrate that these programs have a significant positive effect on employment in SMEs, particularly in private firms, and non-ZhuanJingTeXin firms. Furthermore, the study demonstrates that GFGs can enhance firm employment rates by mitigating financing constraints. It also contributing to firm revenue growth.

In this study, we empirically analyze the impact of the effects of digital inclusive finance (DIF) on high-quality economic development in Chinese prefecture-level cities. We find the following conclusions: first, the total index and sub-index of DIF can promote high-quality economic development. Second, DIF significantly promotes high-quality economic development by narrowing the urban-rural income gap and alleviating financing constraints. Third, DIF is conducive to the improvement of economic quality in neighboring regions.