The Study Of Internet Economy Impacting On Economic Growth

With the initiating of Internet, Internet economy is gradually moving on the right track. Over the past decade, the permeability has increased year by year with the popularization of Internet in China. The popularity of this technology has broadened the scope of Internet, thus leading to the emergence of Internet economy. Combining with other platforms, Internet economy constantly transforms the traditional industries and creates emerging industries. Besides, it explores new ways of development in practice, opens up new fields, and tries to integrate with new industry. Internet economy is built on the basis of informatization, through information integration and industry integration. It relies on Internet information technology, including five types of economic activities: Internet finance, e-commerce, instant messaging, online games and search engines. Under the Internet economy environment, the economic development has shown the characteristics of informatization and globalization. The application of information technology accelerates the pace of technological innovation, and promotes the transformation from accumulation of human capital to real productive forces, breaks the geographical restrictions and spreads over the world. The international economic development trend highlights the global features. Compared with traditional economy, the Internet economy is faster in transmission speed, higher in permeability and relativity, and more obvious in the external economic characteristics. Since International economy is closely linked to the Internet, the spatial reliability of the public is weakened relatively, the time span of information transmission is contracted. Therefore, Internet economy has a high degree of sensitivity to the market. Starting from the second industry, Internet technology is gradually expanding to the third industry, which promotes the integration of traditional industries and the Internet industry and production of emerging industries, such as online payment,020, online banking, instant messaging and other industries. Internet economy has brought the external economy, enhanced the industrial value of the integration industry, and attracted more industries to join the Internet economy. This spiral formation plays a role in self-expansion constantly. In the information-based society, the thinking of’Internet+’promotes the transformation and upgrading of traditional industry, as well as the creative development of more industries. Through the destruction and establishment of traditional industry, Internet economy develops from the desktop era to the mobile era, from online to offline, experiences the combination of information technology and Internet applications, creates more advanced productivity, and promotes the optimization of national economic industrial structure, which drives the vitality of national economic development, finally promotes economic growth.The main content is the impact of Internet economy on the economic growth from the perspective of theoretical analysis and empirical analysis. It elaborates the connotation, classification and characteristics of Internet economy, and sums up the relevant researches. On the basis of relevant research results, it establishes the theoretical system of the relationship between Internet economy and economic growth, builds the theoretical framework, analyzes the mechanism of the impact of Internet economy on economic growth, and divides the effects of Internet economy on the economic growth into two aspects:direct and indirect. The indirect effects include two dimensions:human capital and technological innovation. From the empirical perspective, it verifies the dynamic impact of Internet economy on economic growth with a total of 21 sets of quarterly time series data from the first quarter of 2010 to the first quarter of 2015 by using VAR model. The result shows that Internet economy can effectively affect economic growth. Furthermore, by using the PLS path model, it establishes the path model of Internet economy affecting economic growth based on the cross section data of 31 provinces (autonomous regions and municipalities) in 2013. The effect size of Internet economy directly impacting on economic growth is 0.496; the indirect effect size of human capital is 0.307, while the indirect effect size of technological innovation is 0.154. The total indirect effect is 0.461, and total effect is 0.957. Therefore, the impact of Internet economy on economic growth should not be overlooked. Finally, on the basis of theoretical analysis, this thesis puts forward some relevant policy recommendations to develop the Internet economy and thus promote economic growth, which can provide references for other researches.