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Local FinTech development, industrial structure, and north-south economic disparity in China

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  • Yang, Tongbin
  • Zhou, Bo

Abstract

The widening economic disparity between the northern and southern regions has constrained China's overall and further economic development. We investigate whether FinTech can mitigate the north-south economic disparity in China. Through regressing a panel dataset encompassing 285 Chinese cities from 2008 to 2021, the results confirm the effectiveness of local FinTech development. The enhancement of local FinTech development by 1% will result in a reduction of north-south economic disparity by 0.13%. The mechanism test reveals that local FinTech development contributes to the advancement of industrial gradient structure and fosters enhancements in industrial ownership structure, thereby narrowing the north-south economic disparity. Note that industrial structure can achieve more positive impacts if the local FinTech development crosses a certain threshold.

Suggested Citation

  • Yang, Tongbin & Zhou, Bo, 2024. "Local FinTech development, industrial structure, and north-south economic disparity in China," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000516
    DOI: 10.1016/j.irfa.2024.103119
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