Empirical Research On Digital Finance Helping Industrial Structure Upgrade

In recent years,some financial technology practices in China have already taken the lead in the world.In the field of digital finance,the new financial format has made great contributions to small and medium-sized enterprises and low-income groups in providing services such as mobile payment,online loans and Internet financial management.It is reported that in the first 10 months of 2018,China Mobile's payment volume reached 12.8 trillion US dollars,far exceeding the US$ 49.3 billion.The three Internet banks issue about 10 million loans to small and medium-sized enterprises and individuals every year.In 2018,financial science and technology investment reached 25.5 billion US dollars in China,accounting for 46%of the global financial science and technology investment.Although digital finance is rapidly changing the macro-economic environment,business model and even the details of people's lives,at present,the analysis on how to understand the macro-micro economic impact of digital finance is obviously lacking,and rigorous academic research is even more insufficient.Based on the above background,this paper studies whether the development of digital finance can promote the upgrading of industrial structure of China,and explores whether technological innovation is the transmission mechanism between the two,providing corresponding policy recommendations for how China and various regions can promote the upgrading of industrial structure through the development of digital finance in the new era.At first,this paper sorts out the background of research and relevant documents of the selected topic,and then summarizes the influence of digital finance on the upgrading of industrial structure from the theoretical basis.In the third part,this paper starts empirical analysis,based on the panel data of 31 provinces from 2011 to 2018,in order to investigate the relationship between the development of digital finance and the upgrading of industrial structure.The study found that:firstly,after controlling the fixed effect,the coefficient of digital finance passed the significant level test of 1%,to be more specific,the digital financial index rose by 1,and the upgrading of regional industrial structure would increase by 0.219.Secondly,the coefficients of different dimensions of digital finance passed the significant level test of 1%,with coefficients of 0.277,0.116 and 0.0558 respectively.This shows that the three dimensions of digital finance can effectively promote the upgrading of industrial structure.Thirdly,in the grouping test of economic development level,digital finance has promoted the upgrading of industrial structure in less developed regions and has the characteristics of universality.In the fourth part of this paper,based on the panel data of 31 provinces from the year 2011 to 2018,the mechanism and non-linear relationship between the development of digital finance and the upgrading of industrial structure are investigated.The study found that:firstly,after controlling the fixed effect,the coefficient of dgital finance passed the significant level test of 5%,specifically speaking,the digital finance index rose by 1%,and the level of regional technological innovation would rise by 0.126,indicating that digital finance promoted technological innovation.Overall,the development of digital finance in China has significantly promoted technological innovation,thus contributing to the upgrading of industrial structure.In addition,digital finance only affects the quality of technological innovation,but not the quantity of innovation.Secondly,using panel threshold model,the results show that when ifi?3.9851,the digital financial index will increase by 1 the upgrading of regional industrial structure will significantly increase by 0.146,when ifi>3.9851,the digital financial index will increase by 1,and the upgrading of regional industrial structure will significantly increase by 0.224.On the whole,the promotion effect of digital finance on the upgrading of industrial structure has a non-linear effect of small before large.Thirdly,industrial structure upgrading is divided into three sub-sites,which are 0.1,0.5 and 0.9 respectively.The results show that when the sub-site of industrial structure upgrading increases,exactly from 0.1 to 0.9,the effect of digital finance on it increases in turn.Finally,combined with the above research conclusions,from three angles,it puts forward corresponding countermeasures and suggestions for promoting the upgrading of industrial structure through the development of digital finance.