A Study on the Influence Mechanism of Financial Development on the Improvement of Regional Innovation Ability
XIE Qiaoyan1, WANG Yuwei2
1. School of Finance, Henan University of Economics and Law, Zhengzhou 450046, China; 2. School of Finance, Renmin University of China, Beijing 100872, China
Abstract Based on the inter-provincial panel data of China from 2006 to 2019, this paper reveals the realization mechanism of financial development in promoting the improvement of regional innovation capability. It is found that financial development plays a significant positive role in promoting regional innovation capability, and the development of financial industry is more conducive to promoting regional innovation capability than financial scale expansion and financial efficiency improvement. In addition, the improvement of regional innovation capability promoted by financial development is mainly reflected in the impact on regional incremental innovation capability, while the expansion of financial scale and the development of financial industry tend to promote regional incremental and radical innovation capability respectively. From the perspective of mechanism analysis, increasing the degree of opening to the outside world and weakening the distortion of industrial structure are important reasons for strengthening the improvement of regional innovation ability by financial development. The former is mainly realized through the expansion of financial scale and the development of financial industry, while the latter is mainly reflected in the overall financial development and financial scale expansion by weakening the distortion of tertiary industrial structure. And the development of the financial industry is realized by weakening the distortion of the overall industrial structure. The study expands the understanding of the role of financial development in promoting regional innovation capability, and provides reliable empirical evidence for better promoting regional innovation capability.
XIE Qiaoyan,WANG Yuwei. A Study on the Influence Mechanism of Financial Development on the Improvement of Regional Innovation Ability. Economic Survey, 2022, 39(3): 0138.
2022, Vol. 39 
