Financial Development Scale Research Articles

Measurement and influencing factor analysis of the matching degree between agricultural scientific and technology innovation and rural industry integration under the sustainable background

Agricultural scientific and technological innovation and rural industry integration are the key contents of promoting agricultural and rural modernization in China. This study empirically analyzed the matching relationship between the two and its influencing factors, and found that the matching degree between agricultural scientific and technological innovation and rural industry integration in China showed a steady upward trend in the sample period. Both China as a whole and all regions completed the upgrading from moderate to high matching in the sample period, The performance of each region is also excellent. In 2020, the matching degree of 28 regions will enter a high matching range. The implementation of the rural revitalization policy will help to improve the matching degree between China’s agricultural scientific and technological innovation and rural industrial integration. The scale of rural financial development and the matching degree of lagging one period also have a significant positive impact on the improvement of the matching degree. This study further proposes relevant policy recommendations from improving the supply level of agricultural scientific and technology innovation, enhancing the adaptability between supply and demand of agricultural scientific and technology innovation, improving the policy support system, and optimizing the financial security system.

The impact of outward foreign direct investment on carbon productivity: internal mechanisms and China’s experience

ABSTRACT In the context of the expanding scale of China’s outward foreign direct investment (OFDI), it is crucial to study the economic and environmental benefits of OFDI in the home country. Given the lack of in-depth research on this topic in the previous literature, this paper attempts to fill this gap. Based on the panel data of 30 Chinese provinces from 2006 to 2020, this paper conducts an in-depth study on the relationship between OFDI and carbon productivity and its influence mechanism from the home country’s perspective. The results show that there is a significant positive correlation between OFDI and domestic carbon productivity, indicating that OFDI can reduce CO2 emissions while driving economic growth. OFDI has an indirect impact on carbon productivity in the home country through the paths of industrial structure upgrading, green technology innovation and energy utilization efficiency. The financial development scale has a single threshold effect on OFDI’s influence on domestic carbon productivity. Additionally, foreign direct investment (FDI) positively regulates the relationship between OFDI and domestic carbon productivity. Based on the above results, relevant policy suggestions are put forward to provide useful reference for China to achieve low-carbon development.

Impact of China’s financial development on the sustainable development goals of the Belt and Road Initiative participating countries

China’s Belt and Road Initiative (BRI) aims to strengthen regional economic and policy cooperation and achieve the rapid development among the participating countries. While the impact on the financial development of the economic growth and energy environment of BRI participating countries has garnered close attention among scholars, few studies focus on the impact of financial development on the sustainable development goals (SDGs) of the BRI participating countries. To address this gap, we utilized panel regression models to quantitatively assess the impact of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries, and adopted Geographically and Temporally Weighted Regression (GTWR) model to explore the spatial-temporal effects of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries. Our findings indicate that China’s financial development has significantly promoted the SDGs of the BRI participating countries. This study further reveals that the scale and efficiency of China’s financial development have had a more pronounced impact on the SDGs of Asian countries, low- and middle-income countries, and the Land Silk Road participating countries, compared to those of European countries, high-income countries, and the Maritime Silk Road participating countries, respectively. In contrast, the structure of financial development primarily promotes the SDGs of European and high-income BRI participating countries in the land silk belt. The role of China’s financial development in promoting the SDGs of most BRI participating countries has gradually increased over time. This study provides valuable insights for decision-makers in China to facilitate the sustainable development of BRI participating countries and foster a shared community within the BRI framework.

Effect on high-quality economic development of foreign direct investment in China from the triple perspectives of financial development

High-quality economic development focuses on achieving effective qualitative improvement and reasonable quantitative growth in the economy, which is the essential way for China to achieve sustainable development. This paper aims to investigate the role of financial development in the impact of foreign direct investment on high-quality economic development. GDP and green total factor productivity are used to measure the quantity and quality of economic development, respectively. We construct benchmark panel regression models, nonlinear interaction term models, and panel threshold models to examine the threshold effect of FDI on high-quality economic development based on the scale, structure, and efficiency of financial development. A series of tests are conducted to check the robustness of the estimates. Our results show that green total factor productivity in China is primarily driven by green technology progress. Additionally, foreign direct investment has a positive impact on China's high-quality economic development, with a threshold effect and nonlinear characteristics. Specifically, the scale of financial development affects the influence of foreign direct investment on the quantity of economic development, while the efficiency of financial development affects its influence on the quality of economic development. Furthermore, the structure of financial development affects both the quantity and quality of economic development. This study presents novel findings that contribute to understanding the role of financial development in the impact of foreign direct investment on high-quality economic development. Likewise, our research has implications for achieving high-quality development. The introduction of foreign direct investment under the high-quality development of the economy should comprehensively consider financial development.

Examining the impact of rural finance development on farmers’ incomes in business context. Evidence from “The Belt and Road” from key provinces

Abstract The gradual increase in the world population has a significant impact on businesses, productivity, and financial development in the context of rural life. As the population continues to grow, there is increasing pressure on farming systems to produce more food to meet the growing demand. In addition, the growing population can lead to an increased demand for natural resources such as water, land, and forests. This can create challenges for rural communities that depend on these resources for their livelihoods. In this study, it was determined as a problem that the financial system deepened in regions where the savings base was not large enough and the level of savings was not at the desired level. In this context, since improving the management of the rural labor structure and increasing investments in science and technology can also increase farmers’ incomes, the study aims to deepen rural financial reform and increase the efficiency of the financial system in business management. In the study, the key provinces of “The Belt and Road” (except Chongqing and Tibet) were considered as research objects and 2000-2015 annual panel data were used to analyze the threshold regression model. According to the research findings, when the threshold of financial development efficiency is variable, the growth of farmers’ incomes in general is prevented, when the scale of financial development is variable, the effect on farmers’ incomes gradually changes from negative to positive. In line with these findings, it is recommended to strengthen the quality of education of rural workers and promote the integration of urban and rural areas, increase investments in agricultural science and technology, and improve the service system of agricultural science and technology.

Sustainable Urban Competitiveness from a Financial Development Perspective: An Empirical Study of China

The development of the financial industry directly affects the sustainable competitiveness of a city and even an economic region, and the development of urban finance helps to enhance the sustainable competitiveness of a city. This paper firstly reviews the relevant theories of sustainable urban competitiveness and explains the impact mechanism of financial development on sustainable urban competitiveness in developing regions. It then draws on the data of 17 prefecture-level cities in Central China from 2006 to 2020. It uses quantitative research methods, such as principal component analysis and regression analysis, to analyse and study the factors of financial development that influence sustainable urban competitiveness, thus realising the research purpose of enhancing sustainable urban competitiveness. After an in-depth analysis, the paper draws the following conclusions: (1) financial development is conducive to improving the sustainable competitiveness of a city in developing regions; and (2) the local government should focus not only on expanding the scale of financial development, but also on the quality of financial development, adjusting the financial structure, improving financial efficiency, and actively promoting the opening of financial markets and innovation of financial products.

Research on the relationship between economic growth, financial development scale and financial output in Shanxi Province

In today’s economic society, the development of the financial industry plays an increasingly important role in promoting the economy. Throughout the world and domestic provinces, economic development must be accompanied by the development of the financial industry, and the development of the financial industry will further promote economic growth. Therefore, this paper studies the factors promoting economic development from the perspective of financial industry. Combined with the economic situation and the current situation of the financial industry in Shanxi Province, using the time series data from 2000 to 2019, this paper analyzes the relationship between the change of economic growth and the change of financial output and the scale of financial development, constructs a VAR model, and carries out Granger causality test and variance decomposition. The results show that for Shanxi Province, the scale of financial development can promote economic growth and is a two-way causality, while financial output is not the cause of economic growth, and its impact has a negative response to economic growth. Finally, according to the research results, this paper puts forward some suggestions to improve the scale of financial development to promote the economic growth of Shanxi Province.

The Impact of the Pilot Free Trade Zone on Regional Financial Development

AbstractThis paper focuses on the Shanghai pilot free trade zone (FTZ). It investigates the effect of the FTZ policy on regional financial development. The synthetic control method employs quarterly data from 2005 to 2019 at the provincial level to investigate counterfactual states before and after the pilot FTZ was set up. First, our results reveal that the Shanghai pilot FTZ had a positive influence on the following four variables proxied for regional financial development: (i) the scale of regional financial development; (ii) the efficiency of indirect financial development; (iii) the efficiency of direct financial development; (iv) the structure of financial development. Second, our results found that the policy effects that began to emerge from 2014 onwards exhibited a steadily increasing trend. As a result, the four proxy variables have increased by (i) 197 percent, (ii) 202 percent, (iii) 9.4 percent, and (iv) 15.2 percent, respectively. That is, the scale of regional financial development and the efficiency of indirect financial development have increased more than the other proxy variables.

A Study on Credit Data-Based Poverty Alleviation in Rural Yunnan, China.

The main path of development credit funds in rural poverty alleviation in Y province is crucial. This paper studies the rural poverty alleviation work in extreme poverty areas in Yunnan and puts forward targeted and instructive policy suggestions for specific difficult areas. Research the relationship between credit resource allocation and rural poverty alleviation. The existing research is mainly based on the relationship between financial development and economic growth, income growth, income distribution, and, on the surface, the relationship between the scale of financial development and the efficiency of financial development and other indicators. The purpose is to put forward targeted measures and suggestions on the basis of theoretical research and model analysis to help the Yunnan banking industry support poverty alleviation. The results of the study show that there is a causal relationship between agriculture-related loans.

Correlation Analysis between Financial Development Level and City Size Based on Mutual Information Algorithm

Urbanization is the accompaniment of industrialization and modernization, a symbol of the progress of human civilization, and it has always been the focus of social attention. With the transfer of rural population to cities, the secondary and tertiary industries continue to produce agglomeration effects, and the urbanization process is accelerated. The level of urbanization has gradually become an important indicator to measure the degree of regional development, which has led to the exploration of the inner dynamics of urbanization. Finance is the core of modern economy, and urbanization is an important driving force for modern economic and social development. Research on the relationship between financial development and urban scale should also receive widespread attention. On the basis of reviewing and sorting out the related research results of urbanization and financial development, this paper makes an in-depth analysis of urbanization and financial development, respectively, aiming to have a systematic, comprehensive, and objective analysis of the interaction between urbanization and financial development. On this basis, combined with the current situation of our country’s financial development and urbanization, the internal relationship between the two is discussed. Based on the mutual information algorithm, this paper selects indicators that are representative of urbanization level, financial development, and economic development. By using the mutual information theory to analyze and rank the social and economic factors related to financial factors, it reveals the most relevant and accurate financial forecast. Then, it also discusses whether there is a cointegration relationship between urbanization and financial development and economic growth in our country and the causal relationship between them and analyzes the reasons on this basis.

Effect of Financial Development on Export Trade in China

This study decomposes export trade into three dimensions: size, structure, and mode in 1987–2018 China’s relevant financial development and export trade. The study applies regression in the corresponding empirical analysis method and finds that excessive financial development reduced the growth of international trade scale, had less effect on the structure of export trade, and reduced the proportion of processing trade. Its marginal contribution lies in a comprehensive and accurate understanding of the impact of financial development on export trade. Financial development should be kept stable; otherwise, it will reduce export trade or even hinder the development of export trade. Therefore, China should maintain the coordinated development of finance and export trade, not excessively pursue the expansion of the scale of financial development, maintain a reasonable financial development structure, and improve the efficiency of financial development. China should pay attention to the phenomenon of diminishing marginal efficiency of financial development.

Factors Influencing the Coupling of the Development of Rural Urbanization and Rural Finance: Evidence from Rural China

This study empirically analyzes factors influencing the coupling and coordinated development of rural urbanization and rural finance. For this purpose, the study employs the coupling degree model and develops a panel quantile model to estimate the coupling degree and coupling coordination degree of rural urbanization and rural finance. Accordingly, the study presents panel data comprising 31 provinces, municipalities, and autonomous regions in China from 2010 to 2019. The empirical results reveal that the coupling degree of rural urbanization and rural finance is relatively low in most study areas. This result suggests that rural urbanization and rural financial development in most provinces in China have not exhibited coordinated development. Further, the results reveal that urban population density negatively affects the coupling and coordination degree of rural urbanization and rural finance. Moreover, the effects of urban population density are more significant in areas with a low coupling coordination degree compared with those with a higher coupling coordination degree. An increase in the quantile gradually decreases the effect of the proportion of educational expenditure to GDP on the degree of rural urbanization and rural financial coupling coordination. However, the effect of financial development efficiency increases accordingly. The per capita GDP, per capita fiscal expenditure, and per capita built-up area significantly affect all the quantiles, indicating a positive correlation. This correlation can promote the coupling and coordinated development of rural urbanization and rural finance. In areas with a low coupling coordination degree, the financial development scale significantly positively affects the coupling coordination degree of rural urbanization and rural finance. In areas with a high coupling coordination degree, the financial development scale significantly negatively correlates with the coupling coordination degree. In addition, a positive correlation exists between the financial development structure and the coupling coordination degree of rural urbanization and rural finance.

How financial development scale and R&D influence regional innovation efficiency: empirical evidence from the financial industry.

Financial elements and R&D elements are significant drivers for enhancing regional innovation efficiency. This paper measures financial elements by financial development scale and the marketization level of the financial industry and R&D elements by the inputs and flow of R&D personnel and R&D capital and specifically considers R&D element flow to quantify the consequential spatial spillover effects. Based on provincial panel data from 2008 to 2018, the paper firstly estimates the regional innovation efficiency of China’s 30 provincial-level administrative regions using super-efficiency DEA and then conducts an empirical analysis of the influence of financial elements and R&D elements on regional innovation efficiency by the use of the Tobit model and three spatial econometric models. It is found that, by and large, the financial development scale, the marketization level of the financial industry, the inputs of R&D personnel and R&D capital, and R&D capital flow all have significant effects on regional innovation efficiency. Nonetheless, by region, R&D personnel flow in central China can significantly boost regional innovation efficiency while fails in eastern and western China. From the spatial perspective, both financial elements and R&D elements have significant positive spatial spillover effects. Therefore, in order to bolster regional innovation efficiency, it is crucial to improve the allocation of financial elements and R&D elements and build a tight regional collaborative innovation network.

An Empirical Study on the Efficiency of Green Innovation Supported by Urban Financial Development in the Pearl River Delta Cities

Green innovation is the technological innovation under the premise of environmental protection, energy conservation and emission reduction. Both technological innovation and green development need a lot of financial support. Does financial development effectively support the promotion of green innovation? This article selects 2009- 2018 panel data of nine cities in the Pearl River Delta and uses the non-radial direction distance function (NDDF) method of Data Envelopment Analysis to measure their efficiency of green innovation. Then, we use the Tobit model to verify to the effects of financial development on green innovation. The results showed that the index reflecting financial development scale of the Pearl River Delta’s cities, there is significantly negative correlation between the number of financial institutions and green innovation; the number of practitioners in financial institutions, the proportion of fiscal expenditures on science and technology, energy saving and environmental protection in total expenditures showed an evidently positive correlation between them. It indicates that financial development of the nine cities is good for the improvement of green innovation efficiency. Further, this paper uses substitution variables to conduct robustness test, and the above conclusions are still valid.

The mechanism of financial development promoting technological innovation in strategic emerging industries

ABSTRACT This paper starts with the Cobb Douglas function, introduces financial development as an influencing factor of technological innovation in strategic emerging industries into the production function, and then incorporates the transfer function into the linear model, further deepens the linear model into a nonlinear model, and chooses to use financial development scale and financial development efficiency as conversion variables. The panel smooth conversion model (PSTR) is used to study the nonlinear effects of financial development and technological innovation and find the best interval for financial development to promote technological innovation in strategic emerging industries. We introduce the economic and human capital spatial weight matrix in the spatial lag, spatial error, and spatial Durbin model. Finally, we verify the spatial spillover effect of financial development in promoting technological innovation in strategic emerging industries. The research results provide empirical evidence for the government to formulate policies for the long-term development of strategic emerging industries and technological innovation in strategic emerging industries.

An empirical analysis of the impact of financial development on the income gap between urban and rural residents in China - based on the PVAR model

Although the level of China's financial industry has developed rapidly, but the domestic problem of urban-rural development imbalance is becoming more and more serious, which has formed a serious obstacle to the development and progress of social economy. In order to explore the relationship between the level of China’s financial development capacity and the income gap between urban and rural residents, this paper surveys relevant data from 30 provinces, municipalities and regions in a total of 17 years from 2002 to 2018, and introduces the income gap between urban and rural residents, the scale of financial development, and efficiency. Established a PVAR model based on related variables such as financial development structure, and then conducted co-integration test, Granger causality test, GMM estimation, impulse response and variance decomposition. The empirical results show that there is a long-term equilibrium relationship between various variables, and the urban-rural income gap It is the Granger reason for the scale of financial development, but there is no reverse causality. Through dynamic analysis, it is found that the urban-rural income gap is mainly affected by its own reasons. The scale of financial development can narrow the urban-rural income gap to a certain extent, and the efficiency of financial development is to a certain extent. Will widen the income gap between urban and rural areas, and the explanatory effect of the financial development structure can be ignored.

Decomposing scale and technique effects of financial development and foreign direct investment on renewable energy consumption

This paper contributes to literature by divulging the nature of scale and technique effects on renewable energy consumption, considering foreign direct investment (FDI) and financial development as considerable factors of renewable energy demand. The data for 39 countries over the period of 2000–2019 is used for empirical analysis. In doing so, second generation methodological approaches are applied to decompose scale and technique effects. The empirical results show the presence of cointegration between the model parameters, in the presence of cross-sectional dependence and structural breaks. Further, financial development is positively linked with renewable energy consumption. Foreign direct investment and renewable energy demand are positively linked. Composition effect has negative effect on renewable energy consumption. Economic growth and fossil fuel consumption have positive impact on renewable energy consumption. Long run estimation results indicate that renewable energy-FDI and renewable energy-financial development associations are U-shaped. It indicates that the scale effects exerted by FDI and financial development are overridden by technique and composition effects, and hence, the demand for renewable energy and consequential renewable energy consumption rises with the progression of economic growth. Based on this, policy suggestions are provided for these nations to ascertain sustainable development through bringing forth transformations in the energy policies.

Relationship Between the Scale, Structure, Efficiency and Economic Growth of Tobacco Financial Development in China

Objectives: This paper analyzes and studies the relationship between the scale, structure, efficiency and economic growth of tobacco financial development in China. Methods: Through the research on the theory of supply chain finance, this paper studies the products and application of the financial chain in the tobacco industry by using the methods of case analysis, literature research and case analysis. At the same time, taking the products of a bank as an example, this paper describes the product handling and operation process in detail, and analyzes the advantages and disadvantages of the products. Results: Commercial banks at home and abroad have gradually realized the power of the vigorous development of tobacco financial supply chain and actively developed tobacco supply chain financial products. The promotion of China's bank supply chain financial products at this stage will help banks to improve and adjust the traditional credit business structure. At the same time, it helps to improve and optimize the structure of tobacco customers and enhance the business cooperation between tobacco companies and banks. This can reduce the business risk of the tobacco industry and improve the overall profitability of the tobacco industry. Conclusion: The tobacco industry should steadily take advantage of the organization and coordination advantages of the government and make use of development financial funds to overcome difficulties. Only by improving the design and enlarging the leverage of financial support policies can the tobacco industry further develop.

The influence of linear feedback control suppression under the calculation of fractional financial system on the upgrading of high-tech industries.

The paper uses the panel smooth conversion fractional-order system model to divide the mechanism of financial development in high-tech industries into two systems. At the same time, the article uses a continuous state to connect these two extreme situations to investigate the nonlinear characteristics of linear feedback control that inhibit the impact of financial development on high-tech industries. Studies have shown that financial development under a low system has a significant role in promoting high-tech industries. On the other hand, financial development under the high-level system has a restraining effect on high-tech industries. There are dual-threshold characteristics between the scale of financial development and the development of high-tech industries. Firstly, the scale of financial development should be controlled within [0.553, 0.840]. Secondly, there is a single threshold between the level of financial development and the development of high-tech industries, and the level of financial development should be controlled within 0.756.

Empirical Study on the Relationship between Financial Development and Urban and Rural Residents’ Income Gap in Guangdong Province

To explore the mutual relationship between financial development and the income gap in urban and rural residents, this paper uses the Guangdong province’s time series data since the reform and opening up for nearly 40 years, establishes the index of financial development degree and the urban and rural residents income gap, to financial development scale and development efficiency of financial development degree, with difference index to represent the urban and rural residents income gap between the rich and the poor. After the use of theoretical analysis based on the interaction mechanism between them, this essay makes an empirical analysis combined with vector auto-regressive model. The results show that the residents’ income gap between urban and rural areas of Guangdong province will be expanded with the expansion of financial development, and will be narrowed with the improvement of the efficiency of financial development. Therefore, in order to realize the resource configuration optimization, promoting fair income distribution, we should optimize the financing channels, deepen the financial system and income distribution system, and realize the financial development and narrow the gap between urban and rural residents income to reach win-win situation.