Abstract
This paper investigates the relationship between technological finance, high-quality economic growth, and financial stability. Based on data of 30 provinces (including autonomous regions and municipalities) collected between 2004 and 2017, this paper adopts the method of factor analysis to construct comprehensive indexes of technological finance and financial stability before calculating green total factor productivity as the index of high-quality development, using the CRS Multiplicative Model. Then it constructs the spatial SAC model and PVAR model for analyses of the just-mentioned relationship based on the total sample of the nation and regional samples in eastern, middle, and western China, respectively. The results reveal that (1) All samples, whether the total national samples or regional samples of eastern, middle, and western China demonstrate the positive influence of technological finance on high-quality economic development, with an obvious spatial spillover effect. The impact factor is the highest in the eastern region, while the western region holds the lowest factor among the three. (2) Judging by the general national sample, technological finance has an obvious negative shock effect on financial stability within a short period, but the effect gradually dwindles as time goes by. This rule applies to the sample of the eastern region, as its technological finance poses a short-time negative shock effect on financial stability, before gradually diminishing to 0. Neither western nor middle regions have displayed an obvious shock impact on financial stability.
Highlights
Introduction eChinese economy has progressed from the stage of highspeed growth to a high-quality one, and the importance of sustainable economic development cannot be overemphasized for the achievement of economic transformation. e Fourteenth Five-Year Plan passed at the fifth plenary session of the 19th Communist Party of China (CPC) Central Committee proclaims “the promotion of high-quality development” as its keynote
Estimation of the regional samples reveals that technological finance in all three regions holds evident positive influence over the respective region’s high-quality economic growth. e difference lies in the size of the impact factor
According to the method selected by the gross sample PVAR model’s lag order, we run the similar procedure on PVAR models of the eastern, middle, and western region samples, and confirm the generalized method of moment (GMM) estimate results for the 3rd, 1st, and 5th sessions are: Figure 2 shows that, in the eastern, middle, and western regions, the response value of financial stability at its selfshock is positive within a short period, and the shock gradually wanes
Summary
Eir discussion on the relationship between technological innovation and financial development leads to the discovery that the credit market and venture capital can encourage technological progress and high-quality economic growth. Zhang [31] pointed out that the growth of technological finance could stimulate the diversified development of financial institutions’businesses, improve fund allocation and operation efficiency of financial institutions As a result, it could effectively optimize the financial market system, improve the market’s capability to defend and deal with risks and crises, reduce the likelihood of systematic financial crisis and strengthen the stability of economic growth. Erefore, this paper extends the study to the following aspects: (1) e author makes further elaboration on technological finance, high-quality economic growth, and financial stability index, thereby constructing a comprehensive evaluation index system befitting the Chinese condition and of solid reliability. (4) Based on existing research, this paper conducts both national and regional investigations on the relationship between technological finance, high-tech economic growth, and financial stability. Based on the works of Zou and Ni [24] and Zhang and Gu [41], this paper constructs a comprehensive index of technological finance from three aspects: public technological finance, market technological finance, and technological finance output (see Table 1). e weight construction of this comprehensive index is based on the sum of three individual index weights, constructed in accordance with the respective indexes using factorial analysis
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