Open Access Journal Article

How does digital finance affect industrial transformation?

by Rinat Zhanbayev a  and  Wenchao Bu b,*
a
Faculty of Economics and Administrative Sciences, Cyprus International University, Nicosia, Cyprus
b
School of Social and Political Sciences, University of Glasgow, Glasgow, UK
*
Author to whom correspondence should be addressed.
JIE  2023, 2; 1(1), 2; https://doi.org/10.58567/jie01010002
Received: 1 December 2022 / Accepted: 9 January 2023 / Published Online: 16 January 2023
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Abstract

With the continuous advancement of technological revolution and industrial transformation, digital finance supported by big data and artificial intelligence has become an important engine for promoting carbon neutrality. We measured the industrial structure transformation index (ISU) of 30 provinces in China, and discussed the spatial spillover effect and transmission mechanism between digital finance and ISU using the spatial Durbin model. The research results demonstrate that the digital finance development can significantly improve the local ISU. Interestingly, the impact of digital finance on the ISU of adjacent areas has a significantly negative spatial spillover effect, which still exists under the different spatial weight matrix. Digital finance can improve ISU by improving green technology innovation, upgrading industrial structure, and alleviating capital allocation. We also found that the higher degree of marketization and environmental regulation can increase the positive influences of digital finance on ISU. This research proves the effectiveness of the digital finance in improving energy efficiency, and it encourages policymakers around the world to rely on digital finance to promote ecological governance and achieve high-quality economic development.

Keywords: Digital finance; Industrial structure transformation; Threshold model; Spatial correlation; China;
Copyright: © 2023 by Zhanbayev and Bu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Zhanbayev, R.; Bu, W. How does digital finance affect industrial transformation?. Journal of Information Economics, 2023, 1, 2. https://doi.org/10.58567/jie01010002
AMA Style
Zhanbayev R, Bu W. How does digital finance affect industrial transformation?. Journal of Information Economics; 2023, 1(1):2. https://doi.org/10.58567/jie01010002
Chicago/Turabian Style
Zhanbayev, Rinat; Bu, Wenchao 2023. "How does digital finance affect industrial transformation?" Journal of Information Economics 1, no.1:2. https://doi.org/10.58567/jie01010002
APA style
Zhanbayev, R., & Bu, W. (2023). How does digital finance affect industrial transformation?. Journal of Information Economics, 1(1), 2. https://doi.org/10.58567/jie01010002

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