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A Study of Internet Development and Enterprise Financing in China

Author

Listed:
  • Qiang Chen

    (Guangdong Academy of Agricultural Sciences)

  • Yabin Zhang

    (Hunan University)

  • Lian Chen

    (Southwest University of Political Science and Law)

Abstract

The development of the Internet has changed many traditional commercial models of enterprises. Therefore, the term Internet development is increasingly drawing attention from scholars. However, we are not certain whether the development of the Internet improves the problem of difficult financing of enterprises and enhances enterprise financing efficiency. This paper analyzes whether Internet development can promote enterprise financing efficiency. First, the Data Envelopment Analysis- Slack Based Measure (DEA-SBM) model is applied to measure the enterprise financing efficiency values of 31 provinces in China. The measurement results indicate that the enterprise financing efficiency in the eastern regions is higher than that of central and western regions. Then, this paper further tests if Internet development can contribute to enterprise financing efficiency based on an econometric model. The analysis results indicate that Internet development has an obvious promoting effect on enterprise financing efficiency. Later, spatial econometric models are adopted in this paper to further analyze if Internet development has a spatial overflow effect on enterprise financing efficiency. The results indicate that Internet development indeed has a spatial overflow effect on enterprise financing efficiency.

Suggested Citation

  • Qiang Chen & Yabin Zhang & Lian Chen, 2021. "A Study of Internet Development and Enterprise Financing in China," Networks and Spatial Economics, Springer, vol. 21(3), pages 495-511, September.
    • Handle: RePEc:kap:netspa:v:21:y:2021:i:3:d:10.1007_s11067-021-09535-8
    DOI: 10.1007/s11067-021-09535-8
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    Cited by:

    1. Xin, Xinyi & Zhang, Anquan & Liu, Lu, 2024. "Study on the influence of Internet finance on urban household savings rate: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 45-61.

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