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Cultural intensity, financial openness, with regional innovation and entrepreneurship development

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  • Sun, Hongduo
  • Shang, Hongyun

Abstract

Against the backdrop of deepening global economic integration and the vigorous rise of innovation and entrepreneurship, culture and finance, as key factors influencing regional development, have increasingly pronounced effects on regional innovation and entrepreneurship development. This paper selects provincial-level data from China spanning 2007 to 2023 as the research sample to conduct an in-depth analysis of the relationship among cultural intensity, financial openness, and regional innovation and entrepreneurship development. The study finds a significant positive correlation between cultural intensity and regional innovation and entrepreneurship development, indicating that greater cultural intensity can effectively promote such development. In contrast, financial openness suppresses regional innovation and entrepreneurship levels; an increase in the degree of financial openness has not facilitated regional innovation and entrepreneurship but rather exhibits an inhibitory effect. Further analysis reveals heterogeneity in the impact of cultural intensity on regional innovation and entrepreneurship development between regions with high and low levels of external openness. Moreover, financial openness plays a mediating role in the relationship between cultural intensity and regional innovation and entrepreneurship development: cultural intensity can promote regional innovation and entrepreneurship by enhancing financial openness. This mediating effect also shows heterogeneity between regions with high and low levels of human capital. The conclusions of this study hold significant implications for understanding the complex interplay among cultural intensity, financial openness, and regional innovation and entrepreneurship development, providing theoretical foundations and practical references for relevant policy formulation.

Suggested Citation

  • Sun, Hongduo & Shang, Hongyun, 2025. "Cultural intensity, financial openness, with regional innovation and entrepreneurship development," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325013212
    DOI: 10.1016/j.frl.2025.108063
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    References listed on IDEAS

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