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Research on the Development and Influence on the Real Economy of Digital Finance: The Case of China

Author

Listed:
  • Yuexu Zhao

    (College of Economics, Hangzhou Dianzi University, Hangzhou 310018, China)

  • Yujing Feng

    (College of Economics, Hangzhou Dianzi University, Hangzhou 310018, China)

Abstract

Based on the panel data of 31 provinces in China from 2011 to 2020, this paper analyzes the development status and distribution characteristics of digital finance, and studies the impact of digital finance on the growth of the real economy. First, whether China’s digital finance development can be classified by region through quartile images is investigated, and whether there are differences in the development of digital finance between regions and within regions is explored. Then, the dynamic characteristics of regional digital finance development distribution are analyzed by kernel density estimation, and the regression model is constructed to analyze the effect of digital finance development on promoting the growth of the real economy. The numerical result shows that the development characteristics of digital finance are different between regions and within regions, and the development of digital finance can significantly promote the growth of the real economy.

Suggested Citation

  • Yuexu Zhao & Yujing Feng, 2022. "Research on the Development and Influence on the Real Economy of Digital Finance: The Case of China," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8227-:d:856475
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    References listed on IDEAS

    as
    1. Kim, Dai-Won & Yu, Jung-Suk & Hassan, M. Kabir, 2018. "Financial inclusion and economic growth in OIC countries," Research in International Business and Finance, Elsevier, vol. 43(C), pages 1-14.
    2. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2007. "Finance, inequality and the poor," Journal of Economic Growth, Springer, vol. 12(1), pages 27-49, March.
    3. Dipasha Sharma, 2016. "Nexus between financial inclusion and economic growth," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 8(1), pages 13-36, April.
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    Cited by:

    1. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Yu, Siming & Kang, Wan & Wenjun, Liu & Wang, Deli & Zheng, Jieying & Dong, Boyan, 2024. "The crowding out effect of local government debt expansion: Insights from commercial credit financing," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 858-872.
    3. Debao Dai & Mingzhu Fu & Liang Ye & Wei Shao, 2023. "Can Digital Inclusive Finance Help Small- and Medium-Sized Enterprises Deleverage in China?," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    4. Yaping Zhu & Qingwei Xu & Chutong Hao & Shuaishuai Geng & Bingjun Li, 2025. "Synergistic Evolution or Competitive Disruption? Analysing the Dynamic Interaction Between Digital and Real Economies in Henan, China, Based on Panel Data," Data, MDPI, vol. 10(8), pages 1-37, August.

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