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Relationship between business environment and regional innovation level: Examining the moderating role of digital finance

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  • Zhang, Huaqing
  • Cai, Cen
  • Zhang, Xiangjian
  • Tu, Yongqian
  • Zhu, Qianyu

Abstract

This study analyzes data from 255 prefecture-level cities in China from 2012 to 2022 to investigate the relationship between the business environment and regional innovation levels and the moderating effect of digital finance in this relationship. Findings indicate that digital finance and a good business environment individually increase the regional innovation level. Moreover, foreign direct investment mediates the relationship between the business environment and regional innovation level, and digital finance plays a positive moderating role in this relationship.

Suggested Citation

  • Zhang, Huaqing & Cai, Cen & Zhang, Xiangjian & Tu, Yongqian & Zhu, Qianyu, 2024. "Relationship between business environment and regional innovation level: Examining the moderating role of digital finance," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924005799
    DOI: 10.1016/j.irfa.2024.103647
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