The Mechanism Of Digital Finance On Regional Economic Performance

The economy of the country is an important issue of great concern to the Party and the people,and the people will be particularly concerned about the economic development of areas closely related to them.The digital economy is an important part of China’s economic development and an important supporting force.Digital finance is a major component of the development of the digital economy,and digital finance can promote regional innovation and entrepreneurial activities.This paper conducts further research on regional economic performance from a regional creation perspective to explore the relationship between digital finance and regional economic development.This paper selects 2011-2019 prefecture-level city panel data to empirically analyse the impact of digital finance on the regional economy and to test the transmission mechanism of digital finance to promote regional economic performance performance,and robustness tests show that the findings are confirmed to be relatively robust.The results of the heterogeneity analysis in terms of regional location show that digital finance development can positively contribute to regional economic performance,and that regional innovation capacity has a partial mediating effect.The mediating effect is higher in the eastern region than in the western region.The foreign trade dependence of cities significantly moderates the positive relationship between the level of digital finance development and regional economic performance,and it is shown to strengthen the main effect.Finally,this paper proposes some policy recommendations through the findings of the study.The government should give full play to the technological attributes of digital finance,vigorously promote digital finance as a new driver of regional innovation capacity,and promote the construction of a "new digital infrastructure".While broadening the coverage of digital finance and enabling the east and west regions to share the dividends of digital technology,more users will develop the habit of using digital finance through publicity and financial science,etc.,so as to explore the depth of digital finance usage.The moderating effect of trade dependency reminds us that we should pay attention to the impact of FDI on regional economic performance,and introduce foreign capital and technology in a reasonable manner to promote industrial restructuring and management changes.