Abstract
The paper makes empirical analysis of the relationship between sci-tech innovation, financial development and economic growth in China’s Yangtze river economic belt by building panel data period fixed effect model of 11 provinces and cities in China’s Yangtze river economic belt from 2005 to 2015. Static panel analysis results show that financial development and sci-tech innovation in the east, middle and west of Yangtze river economic belt have significantly different effects on economic growth, the performance’s ordering of all provinces and cities in Yangtze river economic belt is east>middle>west; In system GMM(one-step),the ranking of financial development’s contribution to economic growth is financial development structure>financial development efficiency>financial development scale, financial development scale has lag effect on economic growth, and there is still much room for sci-tech innovation to drive economic growth.
Highlights
Sci-tech innovation, financial development and economic growth are important factors in world’s development today, financial development is the motive force of economic development, sci-tech innovation is the source of economic growth, positive interaction between them is conducive to country’s sustainable development and world’s peace and stability
China’s economy has entered what is called a new normal, in which economy has changed from high-speed growth to medium-high growth, paying more attention to quality and efficiency, the epitaxial growth mode which rely on increasing factor inputs has been inappropriate, needs to be transformed into internal growth model driven by financial innovation and technological innovation
Variables Yangtze river East Middle West economic belt lnA. It can be seen from table 4, financial development and sci-tech innovation in the east, middle and west of Yangtze river economic belt have significantly different effects on economic growth, and financial development has contributed more to economic growth than sci-tech innovation, because sci-tech innovation have passed variable’s significance test only in national model, and the coefficient is negative; financial development scale, financial development structure, financial development efficiency have passed significance test in most models, and the coefficient of financial development scale in Yangtze river economic belt and its’ middle is positive, which means the contribution of financial development scale to economic growth is obvious
Summary
Sci-tech innovation, financial development and economic growth are important factors in world’s development today, financial development is the motive force of economic development, sci-tech innovation is the source of economic growth, positive interaction between them is conducive to country’s sustainable development and world’s peace and stability. Yangtze river economic belt straddles China's east, middle and west, is a coordinated development zone of interaction and cooperation between east, middle and west. The paper chose Yangtze river economy belt (11 provinces) as samples, and made empirical study on the relationship between scitech innovation, financial development and economic growth by panel data model, and put forward the corresponding countermeasures and suggestions, so that Yangtze river economic belt can make full use of finance (the first driving force) to lead the transformation of economic development mode through sci-tech innovation (the first source power), promote growth of the real economy
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