The Research On The Urban Economic Development Effects Of Non-cash Payment In China

Payment system is the core infrastructure of modern finance,is the inevitable product of the development of commodity economy to a certain stage.And it has become an important force for financial services to serve real economy and promote economic transformation and development.At present,non-cash payment has become the main payment method for residents and enterprises in China,and mobile payment is widely used in daily life and small retails.Alipay and WeChat Pay are wide spread in almost every payment scenario in work and daily life.Payment has a natural connection with urban economic development.Financial service,with the payment system as its foundation,is an indispensable driving force for urban economy in the age of information economy.Like traditional transportation facilities and living facilities,payment system becomes a new type of infrastructure for urban economic growth.Based on the financial function theory and the agglomeration economy theory,this paper uses the capital turnover data and non-cash payment transaction data of the payment system and analyzes their roles on urban economic growth,industrial structure optimization and spatial agglomeration effect,combined with pay economics and urban economics.It attempts to explore the impacts of new type of infrastructure construction on urban economic agglomeration in the era of information economy.First,through literature reviews on relevant domestic and foreign studies,this paper expounds the function mechanism of non-cash payment on urban economic development based on the financial function theory and the spatial agglomeration theory,which lays a theoretical foundation for the research of this paper.Theoretical analysis shows that efficient payment system is the foundation of urban financial system,which opens up a fast financing channel for urban economic development.Financial agglomeration effect can be summarized as scale economy effect,information spillover and good liquidity of payment mechanism.The development of payment system adapts to the needs of urban development in the information technology era and becomes a new type of infrastructure for urban economic agglomeration.Non-cash payment also has spatial agglomeration effect.Its externalities are reflected in reduced transaction costs of goods and services,improved agglomeration of economic activities such as the service sector in specific regions and cities,as well as urban economic growth through the development of tertiary industry.Second,based on the above theoretical analyses,this paper introduces the development history and status quo of payment system and non-cash payment.Then an empirical analysis model is constructed based on the classical cash demand theory to empirically study the substitution effect of non-cash payment on cash payment from the perspectives of total substitution and incremental substitution.Objectively,it lays a realistic foundation for the research of this paper.The results show that the rapid development of non-cash payment has changed the traditional law of money circulation and creation to some extent,and has an obvious impact on the cash circulation.The construction and development of the payment system promote the rapid development of non-cash payment,realize the real-time liquidation of transaction funds,reduce the in-transit funds,accelerate the capital turnover,increase the actual money supply in the economic field,and provide support for the improvement of the efficiency of economic activities.Third,this paper uses the time difference correlation analysis method and granger causality test method to verify the correlation among non-cash payment,urban economic growth and production efficiency.It then constructs the panel vector autoregressive(PVAR)model to further analyze their dynamic correlation mechanism.The empirical results show that non-cash payment has a positive impact on economic growth and production efficiency.Compared with bill payment,bank card payment has a more obvious promoting effect on economic growth and production efficiency in the medium and long term.Finally,based on the above theoretical research,reality research and correlation research,this paper empirically analyzes the impact of non-cash payment on urban economic development from the perspective of urban industrial structure and spatial effect.On the one hand,this paper uses provincial panel data to build an empirical analysis model,and conducts an empirical study on the economic effect of non-cash payment development from two aspects of urban economic growth and industrial structure development.The results show that non-cash payment represented by bank cards and bills has a significant positive impact on urban economic growth.Different payment instruments have different influences on urban industrial structure.Bill payment has a significant positive effect on the secondary industry,while bank card payment has a significant positive effect on the tertiary industry.This means that,with the increasingly optimized layout of China's payment and pay market,traditional non-cash payment tools,such as bills and bank cards,are increasingly improved,reducing the transaction costs of enterprises and residents and improving the payment efficiency.The construction of infrastructure in the bill market has been accelerated,and the business advantages of high convenience in electronic bill transaction and low operational risk have become more obvious,which has facilitated payment for processing and manufacturing enterprises.The environment for bank cards acceptance is improving increasingly.As an important carrier of consumer finance,credit card promotes the daily consumption of residents,thus significantly promotes the development of the tertiary industry and plays an important role in optimizing the urban industrial structure.On the other hand,this paper makes an empirical analysis of the spatial agglomeration characteristics and economic growth effects of non-cash payment development.The research based on the methods of location entropy,agglomeration index and global spatial autocorrelation coefficient shows that the development of non-cash payment in China has certain agglomeration characteristics and regional differences.The agglomeration index of bills and bank cards is stable and shows a high agglomeration state.The development of non-cash payment in China has obvious spatial relevance.The spatial correlation of bank cards is significantly higher than that of bill.At present,the non-cash payment mode in China is dominated by bank cards.The spatial relevance of bills decreases gradually,which shows that the status of bills in the field of payment and settlement is declining,while the spatial relevance of bank cards is basically stable.The research results of spatial measurement show that the development of non-cash payment in China has a positive promoting effect on economic growth.Every 1%increase in the transaction amount of bills and bank cards will promote the GDP growth of 0.11%and 0.13%respectively.The promoting effect of bank cards on economic growth is higher than that of bills.The impacts of non-cash payment on economic growth are mainly reflected in the development of tertiary sector and economic growth as the result of improved efficiency and reduced costs.China is now undergoing profound economic restructuring with the proportion of tertiary sector higher than that of secondary industry.Non-cash payment plays an important role in this process.