Analysis Of The Influencing Factors Of The Differences In The Development Of Internet Finance Between Cities

At present,the development of Internet finance in China has shown a sudden emergence.Various Internet financial platforms have sprung up,and Internet financial products have various forms.Internet finance has its own unique business model and value creation method,its impact on traditional finance is also increasing,it has become an indispensable part of the modern financial system.However,along with the rapid development of Internet finance,the problems faced have also appeared one after another.Among them,regional development differentiation is one of the most prominent problems.In China,the level of Internet finance development in different cities is different,and the regional differentiation pattern is obvious.The specific performance is: the level of Internet finance development in the eastern cities is significantly higher than that in the central and western cities,while some cities in the central and western areas are performing better than others.What is the reason and what causes the formation of the regional differentiation pattern of China's Internet finance development is an urgent problem to be solved.Therefore,from this perspective,research on Internet finance is imperative.The existing articles mainly focus on qualitative research on Internet finance,and there are few articles on quantitative analysis of Internet finance using authoritative data.There are few researches on the influencing factors of Internet finance's development differences among different cities.Based on the previous studies,this paper puts forward its own views on the weak links of existing research and further conducts empirical research.The main reason for the formation of the difference in the development of Internet financial cities is the knowledge spillover effect of the Internet industry and the traditional financial industry.In addition,the development of the Internet finance industry is likely to have spatial agglomeration,and the existence of this spatial agglomeration will make the regional differentiation pattern more solid.Since Internet finance is a combination of the Internet and finance,it has the characteristics of both the Internet industry and the financial industry,and is also affected by the Internet industry and the financial industry.When there is a knowledge spillover effect,the knowledge accumulated by the Internet industry and the traditional financial industry,such as technology,experience,and high-quality talents,will flow to the Internet finance industry to promote its better and faster development.Therefore,the more developed Internet industry and traditional financial industry,the more likely spillover effect will occur;in contrast,the backward development of cities will have less spillover effects.The development level of Internet and traditional financial industries in the eastern cities is significantly higher than that in the central and western cities,so the development level of Internet finance also shows that the eastern part is significantly higher than the central and western regions.However,due to the small spillover effect of the central and western cities,the low level of development of Internet finance has provided a broader space for its further development and laid the potential comparative advantages of these cities.This paper adopts the "Peking University Internet Finance Development Index",using the Internet financial development index data of 335 prefecture-level cities in China,firstly tests the spatial correlation of Internet finance,and builds a common regression model without spatial factors.And the spatial regression model with spatial factors,empirically study the impact of knowledge spillover effects in the Internet and traditional financial industries on the level of Internet finance development.The results show that there is a significant spatial agglomeration effect in China's Internet finance.Cities with high development level will drive the development of Internet finance in its neighboring cities,and cities with low development levels will have low levels of development in neighboring cities,thus making the cities that development level higher gather together and cities with low levels of development gather together.In addition,according to the results of the regression model,the development of Internet finance has obvious spatial agglomeration effect in China,and the main factors leading to this effect are geographical factors rather than economic factors.The knowledge spillover effects of the Internet and traditional financial industries have a significant positive impact on the development of Internet finance.Even after controlling all the economic characteristics variables,the spatial agglomeration effect of Internet finance and the knowledge spillover effects of the Internet and traditional financial industries are still presence.Therefore,Internet finance has a high level of development in the developed eastern regions of the Internet and traditional financial industries,and the relatively backward development of the central and western regions is low.