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How does digital finance affect regional innovation capacity? A spatial econometric analysis

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  • Hui, Peng
  • Zhao, Hui
  • Liu, Desheng
  • Li, Ye

Abstract

Digital finance is a new model of financial services that impacts social development; however, there is a lack of adequate theoretical explanation of how digital finance affects regional innovation. Using the panel data for 31 provinces in China from 2011 to 2018, this paper investigates the impact of digital finance on regional innovation Capacity. We find that digital finance can enhance regional capacity. Further analysis indicates that the positive impact of digital finance on regional innovation capacity is stronger for provinces with a higher tertiary sector share of total GDP and a lower degree of market development. Digital finance still has a significant effect on regional innovation capacity in the case of introducing the spatial role of innovation capacity of neighboring provinces. These findings have implications for further exploring the use of digital finance to enhance regional innovation capacity in a differentiated market or geographical context.

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  • Hui, Peng & Zhao, Hui & Liu, Desheng & Li, Ye, 2023. "How does digital finance affect regional innovation capacity? A spatial econometric analysis," Economic Modelling, Elsevier, vol. 122(C).
    • Handle: RePEc:eee:ecmode:v:122:y:2023:i:c:s0264999323000627
    DOI: 10.1016/j.econmod.2023.106250
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    Cited by:

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    2. Du, Jiayue & Gao, Haoyu & Wen, Huiyu & Ye, Yanyi, 2024. "Public data acces and stock price synchronicity: Evidence from China," Economic Modelling, Elsevier, vol. 130(C).
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    5. Chong Zhang & Baoliu Liu & Yuhan Yang, 2024. "Digital economy and urban innovation level: A quasi-natural experiment from the strategy of “Digital China”," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    6. Gao, Xiaoxue, 2023. "Digital transformation in finance and its role in promoting financial transparency," Global Finance Journal, Elsevier, vol. 58(C).
    7. Hongyi Wang & Yi Li & Bingyang He, 2024. "Spatial Spillover Effects of Digital Finance on Corporate ESG Performance," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    8. Li, Nan & Zhou, Yifan, 2024. "Can digital financial development promote corporate green technology innovation?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1562-1582.
    9. Xiujie Tan & Si Cheng & Yishuang Liu, 2024. "Green digital finance and technology diffusion," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    10. Ying Yu & Qian Zhang & Fan Song, 2023. "Non-Linear Impacts and Spatial Spillover of Digital Finance on Green Total Factor Productivity: An Empirical Study of Smart Cities in China," Sustainability, MDPI, vol. 15(12), pages 1-22, June.

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