Internet Technology、Financial Inclusion And Economic Growth

In several past years, according to the fact of high development of IT industry, thereare many emerging Internet Finance Models such Internet Banking, P2P Finance, onlinemini loans, and online payment. Therefore, Internet Finance now is regarded as the newoperation in finance industry. There is a high value and meaningfulness to research theclassic model of Internet Finance. This paper focuses on three relatively mature andrepresentative models of P2P Finance, crowd funding and online mini loans. Then the paperexamines interrelationship among three factors: network technique, financial supportingand involvement, and economic development. Based on relations of these three factors, thispaper processes the empirical analysis including the co-integration test and panel VAR testby inputting the panel statistic data from186countries globally. Considering theunbalanced development among countries in network technique, financial involvement andeconomic development, this research categorizes these cities by high income, middleincome and low income level according to their degrees and scales of economicdevelopment. The results of empirical analysis show that:(1) based on the world, theeconomic development is with the inertial effect and financial involvement can wellfacilitate the economic development. However, the economic return by the Internettechnique is not fully performed and the influence from the Internet technique is not fullyshown.(2) For three-level-countries, there are large variances of results among each levelof countries due to their various economic development. There is the highest positiveimpact on high income countries from three factors. The financial involvement of Middleincome countries exert a weak enhancement on the economic development. The Internettechnique has a low influence on the economic development, which is not significant. TheInternet technique and financial involvement level of low income countries do not enhancetheir economic development.(3) Internet technique facilitates the improvement of financialinvolvement, and financial involvement help to develop economics. Then the economicdevelopment further enhances the Internet technique. Therefore, these three key factors canshape an important virtuous cycle; improvement of each develops the other two. Finally,based on the situation of China, and the results of this research, this paper will provide therelative suggestions.