Research On The Impact Of Digital Finance Development On Economic Resilience

In recent years,frequent adverse shocks such as financial crises and natural disasters have brought considerable obstacles to the smooth operation of the economy.In particular,the outbreak of COVID-19 at the end of 2019 has directly led to a downturn in the global economy,with imports and exports plummeting,a large number of enterprises halting production and household consumption downshifting.Under such a realistic background,economic resilience has attracted much attention.Many scholars have confirmed that industrial structure,innovation ability and other factors are conducive to the improvement of economic resilience.However,finance,as the "blood" of modern economy,has a multidimensional impact on economic development and is closely related to the resilience of the economy.At present,few scholars discuss whether the development of finance will affect the resilience of the economy.Therefore,this paper focuses on the new financial form,namely digital finance,to explore whether it will affect economic resilience,in order to provide a new perspective for cultivating economic resilience and boost sustainable economic development.This paper carries out research from both theoretical and empirical aspects.Theoretically,this paper analyzes the direct impact of digital finance on economic resilience based on financial development theory,financial exclusion theory and financial inclusion theory,and analyzes the indirect impact and spatial impact based on the mainstream business and digital characteristics of digital finance.Empirically,this paper holds that economic resilience refers to the resistance and resilience,adaptation and adjustment,innovation and transformation of the economic system in the face of shocks.Based on the panel data of provinces(cities/autonomous regions)in China from 2011 to 2019,entropy method is used to measure the economic resilience of each province.Then,a baseline regression model and a spatial panel model are established to investigate the relationship between the two in detail,and a series of necessary tests such as robustness test,mediation effect test and spatial autocorrelation test are carried out.In addition,the instrumental variable method is used to solve the endogeneity problem to ensure the reliability of the research conclusions.The results show that: First,the development of digital finance can directly strengthen economic resilience;Second,digital finance can indirectly affect economic resilience by promoting industrial structure upgrading and driving entrepreneurship,of which the mediating effect of driving entrepreneurship is more significant;Third,there is a significant positive spatial correlation between digital finance and economic resilience,and the development level of digital finance can not only enhance local economic resilience,but also benefit neighboring regions.In this regard,this paper puts forward policy suggestions on how digital finance can better enhance regional economic resilience.Vigorously promote the digital transformation of the financial industry and give full play to the characteristics and advantages of digital finance.By virtue of the development opportunity of digital finance and the digital dividend released by digital finance,constantly optimize industrial institutions and create a good entrepreneurial environment.Strengthen the joint development of regional economy,drive the whole with the local,give full play to the positive externalities of digital finance,and promote the stable and sustainable operation of economy.