Abstract:Based on the inter provincial panel data from 2011-2021, this paper empirically tested the co prosperity effect and its transmission mechanism of digital inclusive finance on rural industrial integration and development by using the two-way fixed effect model and spatial panel econometric model, and revealed the spatial differentiation characteristics and spatial boundaries of the co prosperity effect between different provinces. The results indicate that digital inclusive finance significantly promotes the integration and development of rural industries by improving agricultural total factor productivity, increasing credit financing channels, narrowing income gaps between industries, and enhancing the effect of farmers' common prosperity; The co prosperity effect of digital inclusive finance is significantly better than its depth of use in terms of coverage and digitization, and the wider the integration function of rural industries, the greater the co prosperity effect it brings. The mutual wealth effect of digital inclusive finance on rural industrial integration and development has spatial heterogeneity at the regional level, showing the distribution characteristics of high in the eastern and western regions, low in the central regions, and high in the south and low in the north; With the expansion of economic and geographical distances, the co prosperity effect of digital inclusive finance in promoting industrial integration and development shows an inverted "U" shape of first increasing and then decreasing, and there is a 450 kilometer geographical spatial boundary.