Research On The Impact Of Financial Innovation On High-quality Economic Development

Socialism with Chinese characteristics has entered a new era,which puts forward higher requirements for economic development.At the 19 th National Congress of the Communist Party of China,President Xi put forward the important scientific conclusion that “China's economy has shifted from a stage of rapid growth to a stage of high-quality development.” Finance,as the core and lubricant of the economic and social system,can play a key role in mobilizing production factors and revitalizing the market subjects.It can be seen that financial development driven by financial innovation is an important way to achieve high-quality economic development.As Deng Xiaoping,the chief designer of the Economic Reform and open up,proposed in Shanghai,1991: “Finance is very important and is the core of the modern economy.If we can perfectly solve financial problems,we can certainly all the problems.”Based on this background,this paper studies the impact of financial innovation on high-quality economic development.First of all,this paper sorts out the domestic and foreign literature,and expounds the connotation and related theories of financial innovation and high-quality economic development.Secondly,from the perspective of the new development concept,this paper analyzes the theoretical mechanism of financial innovation on high-quality economic development.Thirdly,from the four aspects,including financial institutions,financial markets,financial products and financial supervision,this paper conducts a statistical analysis of current financial innovation status.Subsequently,an economic high-quality development evaluation system is constructed from the five dimensions of innovation,coordination,greenness,openness,and sharing.The entropy method is used to weight each secondary index,and calculates the economic high-quality development index of 30 provinces,autonomous regions,and municipalities nationwide from 2004 to 2018.The results suggest that the overall high-quality development level of China's economy shows an upward trend,but the development level is still low,and the gap between the eastern region and the central and western regions is large.This paper also uses the systematic GMM(Generalized Method of Moments)to empirically analyze the impact of financial innovation on high-quality economic development.The results clarify that financial innovation at the national level and in the central and western regions will significantly promote high-quality economic development,and financial innovation in the central region will have a significant inhibitory effect on high-quality economic development.Finally,based on theoretical analysis and empirical tests,the research conclusions and policy recommendations of this paper are obtained.