The effects of digital financial inclusion on innovation and entrepreneurship: A network perspective

Zhenghui Li; Jinhui Zhu; Jiajia He; Zhenghui Li; Jinhui Zhu; Jiajia He

doi:10.3934/era.2022238

Electronic Research Archive

2022, Volume 30, Issue 12: 4697-4715. doi: 10.3934/era.2022238

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The effects of digital financial inclusion on innovation and entrepreneurship: A network perspective

1.
Guangzhou Institute of International Finance, Guangzhou University, Guangzhou 510006, China
2.
School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China

Received: 27 September 2022 Revised: 31 October 2022 Accepted: 02 November 2022 Published: 19 December 2022

The development of urban digital inclusive finance has a complex network connection, and the characteristics of this network affect urban innovation and entrepreneurship. By using 287 cities from 2015 to 2019 in China, this paper constructs the network of Chinese digital inclusive finance, extracting two typical network characteristics. And it further studies the impact of the two network characteristics on innovation and entrepreneurship in various cities. The empirical results show that: first, the network centrality characteristics of digital inclusive finance have a significant promoting effect on urban innovation and entrepreneurship; second, the impact of the network centrality characteristics of digital inclusive finance is related to the speed of industrial structure transformation, but the impact mechanism is related to the node number instead of the node strength; third, the impact of the network centrality characteristics on innovation and entrepreneurship exists heterogeneity among cities and the moderately developed cities have the largest impact.
- digital financial inclusion,
- social network analysis,
- innovation and entrepreneurship,
- degree centrality
Citation: Zhenghui Li, Jinhui Zhu, Jiajia He. The effects of digital financial inclusion on innovation and entrepreneurship: A network perspective[J]. Electronic Research Archive, 2022, 30(12): 4697-4715. doi: 10.3934/era.2022238

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Abstract

The development of urban digital inclusive finance has a complex network connection, and the characteristics of this network affect urban innovation and entrepreneurship. By using 287 cities from 2015 to 2019 in China, this paper constructs the network of Chinese digital inclusive finance, extracting two typical network characteristics. And it further studies the impact of the two network characteristics on innovation and entrepreneurship in various cities. The empirical results show that: first, the network centrality characteristics of digital inclusive finance have a significant promoting effect on urban innovation and entrepreneurship; second, the impact of the network centrality characteristics of digital inclusive finance is related to the speed of industrial structure transformation, but the impact mechanism is related to the node number instead of the node strength; third, the impact of the network centrality characteristics on innovation and entrepreneurship exists heterogeneity among cities and the moderately developed cities have the largest impact.

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