Spatial spillover and impact factors of the internet finance development in China

Abstract

Using the social network analysis and quadratic assignment procedure method, this paper analyzes the network characteristic and impact factors of internet finance development in China. Some interesting findings emerge that: (i) the network characteristic exists in China’s regional internet finance development; (ii) some provinces, such as Shanghai, Jiangsu, Beijing, are at the core position of the network and play the leading role of China’s internet finance development; (iii) the spillover is mainly caused by the provinces located in the coastal area in China, and the relationships out of the blocks are far more than it intra block; (iv) the difference in economic development, industrial structure, traditional finance development level, and geography distance have a significant negative effect on the spillover of IF development. Our results may have some implications for policymakers.