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Does digital finance contribute to regional economic growth? Evidence from RCEP countries

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  • Zhang, Xinyi
  • Wang, Tianqi
  • Chen, Yufan

Abstract

This study examines the developmental characteristics of the digital finance cooperation of China and the Regional Comprehensive Economic Partnership (RCEP) in the global economic transition to the digital era. Using a fixed-effects model of panel data from RCEP countries from 2011 to 2021, the study explores the mechanisms between digital finance development and regional economic growth. Furthermore, it conducts a spatial analysis to obtain geographic variables, using their interaction term with internet penetration as instrumental variables. The results show that digital finance development can effectively promote regional economic growth, and an endogeneity test confirms its robustness.

Suggested Citation

  • Zhang, Xinyi & Wang, Tianqi & Chen, Yufan, 2024. "Does digital finance contribute to regional economic growth? Evidence from RCEP countries," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324003088
    DOI: 10.1016/j.frl.2024.105278
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    References listed on IDEAS

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    1. Sauro Mocetti & Marcello Pagnini & Enrico Sette, 2017. "Information Technology and Banking Organization," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(3), pages 313-338, June.
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    More about this item

    Keywords

    Digital finance; Regional economic growth; Rcep; Spatial analysis;
    All these keywords.

    JEL classification:

    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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