The Impact of Digital Finance on Regional Innovation: Evidence from China
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Mayila Tuerxun, Gulinaer Yusufua, Zhiyi Li, Jufeng Yin
Digital finance emerges as a rising financial paradigm that has a significant impact on regional innovation level. This paper analyzes digital finance’s effect on regional innovation, based on China’s provincial panel data from 2011 to 2019, and combines the spatial lag model and mediating effect model for the empirical analysis. The results show that digital finance can significantly promote regional innovation. In sub-regional analysis, it is found that there exists an obvious regional heterogeneity in the regional innovation level promoted by digital finance development. Compared with eastern regions, the role of digital finance in promoting innovation is more prominent in the central and western regions. Furthermore, taking the Theil index and consumption expenditure as mediators, digital finance is found to enhance regional innovation by narrowing the income gap and boosting household consumption.
Digital finance; Regional innovation; Spatial lag model; Mediating effect