The Intermediary Effect Of The Internet On The Financial Industry In Economic Development

From the actual situation of economic and social development since China's reform and opening up,science and technology,financial and economic development are naturally promoted and developed together.Especially after the Millennium,the rapid development of information science technology represented by the Internet has rapidly changed people's lifestyles.Most daily life needs,including clothing,food,housing,transportation and entertainment,can be met in time on the Internet.At the same time of convenient consumption,the cashless payment model is also developing in full swing,and even the hawkers on the roadside stalls have basically got rid of the habit of spare change.It can be seen that in the era of the Internet,information science technology has given birth to enormous productivity and constantly transformed all traditional industries,including the financial industry,which has well interpreted the wise assertion that "science and technology is the primary productive force" since China's reform and opening up.But in concrete practice,macro public policymakers often overlook the subtleties of the structural relationship between information technology,finance,and economic development,for example,the Internet bubble that exploded in 2000 and the financial crisis of 2008.The United States,whose science and technology,finance and economy incomparably developed,even cannot escape from the structural imbalances between them.Under the background of the general suppression of finance in China's current society,the rapid development of the Internet has indeed promoted the rapid development of economy and finance.However,due to the factors such as the lag in the construction of related supporting policies and systems,many problems have arisen.The frequent violent rush of P2 P products making many bosses skipping off with the money is one of the phenomena in the Internet finance industry,which seriously affects the further development of China's unsound social credit system.In the special stage of China's economic development slowing down and improving quality and transforming to higher quality,it is not only of great theoretical significance to study how information technology promotes economic and financial development and the intermediary effect of finance between the Internet and the economy,and to analyze their differences in the development relations between eastern,central and western China,as well as between southern and northern China,but also having practical significance to provide decision-making basis for macro-policy makers.Around this issue,many university scholars and researchers in the industry at home and abroad have also carried out a large number of research and analysis.The relevant research results show that the development of information science and technology represented by the Internet and financial system promotes the furtherdevelopment of the economy,and the development of the Internet also promotes the development of finance and its structure.However,there is little literature on the mediating effect of financial development between the Internet and economic growth.And the purpose of this paper is to comprehensively study the direct or indirect influence transmission mechanism between the Internet,finance and economy through the construction of econometric models,and to analyze the possible differences and reasons in the development of different regions,so as to provide clear and rigorous reference suggestions for decision makers in the period of economic development and transformation in today's China.Centering on the path of Internet's influence on financial and economic development,this paper builds an econometric analysis model by referring to the theory of intermediary effect model and utilizing the macroeconomic data of 218 prefecture-level cities in China,such as economy,consumption,Internet,insurance,bank,securities,export,investment and so on.The study found that:(1)The Internet has a positive role in the economic development,and the Internet has a positive effect on financial development and finance to the economic development.Today's increasingly active information industry,Internet finance supernormal development and the economic disintegration and unprecedented prosperity of the financial industry are proof of evidence.(2)Financial development has a significant mediating effect in the process of the Internet's impact on economic development.At present,the Internet promotes the unprecedented development of the financial industry and also changes the structure of the financial industry to a certain extent.The changed financial industry can provide more abundant,efficient and flexible funds for economic development.All these above can illustrate the existence of intermediary effect.(3)The intermediary effects of different financial institutions such as banks,securities and insurance in the process of Internet impact on economic development are different.And commercial banks have complete mediating effects,securities markets do not have intermediary effects,and insurance has partial mediating effects.This is basically consistent with reality.The development of Internet finance first changed banks,followed by insurance,while the securities market and Internet finance were basically isolated.(4)The development of the Internet promotes the growth of consumption.The development of the Internet makes consumption very convenient and stimulates people's desire for shopping,as evidenced by the unprecedented prosperity of e-commerce platforms represented by Taobao and JD.(5)Financial development has intermediary effect in the process of the influence of Internet on consumption growth.Financial development has intermediary effect between Internet development and consumption growth.Consumer loans in Internet finance have developed rapidly,and the JD's "Baitiao" and Alibaba's "Huabei" are typical representatives of consumer finance.(6)Theintermediary effect of financial development in the process of Internet's influence on consumption development varies from region to region;Among them,the financial development in eastern China has no intermediary effect in the process of the impact of the Internet on the consumption growth,which may be related to the fact that the excessive prosperity of the financial industry in the developed eastern region leads to the serious development of the economy from the real economy to the virtual economy,while the central and western regions have partial mediating effects;However,from the perspective of the north-south,there is a complete intermediary effect in the north,while a partial intermediary effect in the south.It shows that the residents in the northern region are generally poor.And they do not have sufficient funds for consumption,which leads to the general depression of basic consumption.But the development of Internet consumer finance provides financing channels for basic consumption expenditures.In addition,the current situation of the development gap between the north and the south is being larger than that between the East and the West has become a reality that has to be faced.(7)The mediation effect of cities with highest people's livelihood index is in a reasonable range,and the relevant indicators have achieved balanced development,not only with the highest average level,but also with the smallest standard deviation,from which can be seen that the cities focuing on people's livelihood are not only rich overall but also effectively control the gap between rich and poor.However,the mean and standard deviation of the indicators in the urban group with lower livelihood index are relatively low,indicating that the group of cities is universal poverty;the intermediary effect is consistent with that in the backward northern region,which is a complete intermediary effect,indicating that network consumer finance promotes the release of local long-term depressed basic consumer demand.In addition,in the comparative analysis with the development status of the highest group of cities in the People's Livelihood Index,it can be found that the cities in the backward group need to give priority to the development of urban indicators with higher marginal effect according to the specific gap,such as giving priority to the development of health care in the central region,which can effectively promote the flow of medical preventive deposits of residents to the consumer market.And at the end of this paper,the economic meaning of the conclusion is given.