TITLE:
How Digital Finance Affects Economic Development —A Study Based on 31 Provinces in Inland China
AUTHORS:
Xiyu Ma
KEYWORDS:
Digital Finance, Industrial Economy, Economic Growth
JOURNAL NAME:
iBusiness,
Vol.14 No.3,
September
20,
2022
ABSTRACT: With the continuous development of digital
technology, the rapid integration of digital technology and the financial
industry will have a significant impact on China’s economic development trend
and quality. Based on the fixed effect model and data from 31 Chinese provinces
from 2013 to 2021, this paper investigates whether digital finance affects
economic development, delves deeper into the mechanism of digital finance’s
impact on economic development, and examines regional differences in
development. It is discovered that digital finance has a significant positive
impact on economic development, and further mechanistic analysis shows that
digital finance contributes to economic development by attracting foreign
direct investment and optimizing the industrial structure. Digital finance
plays a different role in promoting different regions, with the greatest impact
on the western region, followed by the central region, while the impact on the
eastern region is unclear, particularly in low-income regions.