The Impact Of The Development Of Internet Finance Technology Of China's Commercial Banks On Commercial Banks' TFP

Based on the panel data of China's commercial banks from 2001 to 2017,this paper empirically analyzes the impact of the development of Internet finance technology of China's commercial banks on its total factor productivity by using DiffGMM and SYSGMM.This paper measures the development of Internet finance technology of China's commercial banks by using the variable "growth of electronic bank exchange substitution rate".At the same time,by adding interactive items,this paper empirically analyzes the impact of Internet financial technology spillovers on different types of banks.The paper uses data envelopment analysis method(DEA)to measure the total factor productivity of commercial banks in China,and decomposes the index of total factor productivity of commercial banks into technical change index,pure technical efficiency change index and scale efficiency change index.By decomposing the index of total factor productivity of China's commercial banks,the article further studies the channels of influence of Internet finance development of China's commercial banks on the change of total factor productivity.The results showed that,firstly,the development of Internet finance technology in China's commercial banks has a significant positive impact on China's commercial banks' total factor productivity.This paper measures the development of Internet finance technology of China's commercial banks by using the variable "growth of electronic bank exchange substitution rate".The regression results show that the coefficient of China's commercial banks' "growth of electronic bank exchange substitution rate" on China's commercial banks' total factor productivity index is significantly positive.At the same time,this article uses the "growth of electronic bank exchange substitution rate" to measure the Demonstrate Effect and the Linkage Effect.The empirical regression results of the article verify the theoretical hypothesis that Internet finance improve the total factor productivity of commercial banks in China through the Demonstrate Effect and the Linkage Effect.Secondly,this paper concludes that by adding interactive items,listed banks in China are more inclined to increase market competitiveness by learning Internet financial technologies in the Internet financial shocks.On the other hand,the effect of "growth of electronic bank exchange substitution rate" on total factor productivity of commercial banks is not significantly different between the state-owned and non-state commercial banks in china.Thirdly,the article decomposes the index of total factor productivity of China's commercial banks into the technology change index,the pure technology efficiency change index,the scale efficiency change index,and replaces the commercial bank's total factor productivity index with the three decomposition indexes as the dependent variable.It is concluded that the development of Internet finance technology of China's commercial banks has significantly improved technology change index,the pure technology efficiency change index,the scale efficiency change index of China's commercial banks,so as to improve the index of total factor productivity of China's commercial banks.