Digital finance and the Efficiency of Financial Support for The Real Economy: Empirical Evidence from China

Lin Zhu

doi:10.54097/fbem.v9i2.9143

Authors

Lin Zhu

DOI:

https://doi.org/10.54097/fbem.v9i2.9143

Keywords:

Digital finance, Real economy, Efficiency.

Abstract

Based on the provincial panel data from 2013 to 2020 in China, this paper uses the two-way fixed effect model and the Dynamic System GMM model to study the relationship between the development of digital finance and the improvement of the efficiency of financial support for the real economy. The results show that: Digital finance can significantly improve the efficiency of financial support to the real economy in China; Structural heterogeneity shows that, compared with the degree of digitization, the effectiveness of coverage and depth indicators to improve the efficiency of financial support for the real economy is stronger; Regional heterogeneity shows that the impact of digital Finance on the efficiency of financial support to the real economy in the central and eastern regions is stronger than that in the western regions.

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