The Impact of Financial Innovation on China's Provincial Economic Resilience

Abstract

Financial innovation's impact on the socio-economic resilience cannot be disregarded in the context of the ongoing pursuit of innovation. This study employs a variety of econometric models, including the moderating effect and the mediating effect, to experimentally assess the relationship between financial innovation and economic resilience. The study's findings show that: financial innovation can significantly boost a province's economic resilience; the proportion of state-owned enterprises mitigates the benefits of financial innovation for economic resilience; and improving industrial structure and market activity are two ways that financial innovation boosts economic resilience. Thus, the research in this paper promotes the understanding of the development effect of financial innovation and provides a reference for the path of economic resilience enhancement.