A Study On The Factors Affecting The Development Of Internet Finance

The continuous development of network technology takes the Internet financial concept into the public vision.The Internet financial development model has attracted more and more attention.In 2012,the concept of 'Internet Finance' was first proposed.And in 2017,Internet finance was included in the government work report for the fourth year in NPC&CPPCC.This shows the important position of Internet finance during the development of our country.Compared with traditional financial institutions,Internet finance has more advantages in reducing financing costs and broadening the financing channels for small and medium enterprises.Internet finance will play a more important role in the promotion of financial market changes in the future.So this paper will study the spatial correlation and influencing factors of Internet financial development.This paper introduces the theory of long tail,general equilibrium,financial innovation and spatial correlation first,and then discusses the relationship between Internet finance and traditional finance.Besides,this paper also introduces the factors affecting the development of Internet finance and the use of spatial correlation.Based on this,the author proposed the basic assumptions of this study:the development of Internet finance in our country is difficult to break through the limitations of traditional geographical space now and it still depends on the regional real economy and the development of traditional finance.Then,the paper analyzes the present situation of Internet financial development in each province by Geoda software.It is concluded that the level of Internet finance has continued to rise,but the growth rate is not stable.Also,the Internet finance is unbalanced in regional development.The development of Internet finance in the eastern region is significantly higher than that of the central and western regions.Besides,the trend of the Internet financial development is similar to that of the macro economy,and has not deviated from the development pattern of the real economy,which lays the foundation for the empirical analysis.In the empirical analysis section,this paper chooses the panel data of 29 provinces and autonomous regions in China from January 2014 to March 2016 to study.This paper calculates the Moran I index by the Internet financial development index and makes the conclusion that there is spatial correlation between China's Internet financial development and based on this drawing a partial Moran I index scatter plot.Through spatial auto correlation test,this paper uses the space measurement model and makes the conclusion that the development of Internet finance in the region cannot be beyond geographical space and it is still affected by the spillover effect of the development level of neighboring regions.This proves that the development of Internet finance is dependent on the development of regional economy and traditional finance and it is similar to traditional finance,which shows the effect of space spillage and gathering effect.From the above research,we can conclude that real GDP per capita,loan balance of financial institutions,the tertiary industry proportion and import and export amount have a positive impact on the development of Internet finance,but the impact of government expenditure level is not significant.The last part of this paper puts forward relevant suggestions from the perspective of seeking common development of adjacent areas,improving the regional economic and traditional financial development level and optimizing the industrial structure.