The Effects Of Digital Finance On High-quality Economic Development From The Perspective Of Financial Functions

Over the past 40 years of reform and opening up,although my country has achieved miracles that attract worldwide attention,it is still the largest developing country in the world.What is different from the past is that my country is undergoing profound changes unseen in a century,and the development environment is facing profound challenges.Promoting high-quality economic development has become the party’s top priority in governing and rejuvenating the country.As a new type of financial service model,digital finance has penetrated into every corner of social development,not only changing people’s living habits,but more importantly,affecting the operation of the macro economy.Therefore,exploring the impact of digital finance on the high-quality development of my country’s economy and its mechanism of action is of great significance for the healthy development of the digital finance industry and for accelerating the high-quality development of my country’s economy.From the perspective of financial function,this paper takes 31 provinces in my country from 2011 to 2019 as the research object,and systematically explores the impact of digital finance on the high-quality development of my country’s economy and its mechanism of action.First,combining the functions and characteristics of digital finance and the connotation of high-quality economic development,from the perspective of financial function research,this paper discusses the mechanism of digital finance on high-quality economic development,and further analyzes the role of financial supervision and regional heterogeneity..Then,referring to the existing index system,the digital finance level of each province in my country was measured;and the entropy method was used to measure the constructed economic high-quality development index system,and then the overall situation and regional distribution of my country’s digital finance and economic high-quality development were analyzed.characteristic.Finally,the fixed effect model and the mediation effect model are used to empirically test the impact and mechanism of digital finance on high-quality economic development.The research results show that:(1)Digital finance will significantly promote high-quality economic development.Specifically,for every 1%increase in the level of digital finance,the level of high-quality economic development will increase by 0.1526%.(2)As far as the specific indicators of digital finance are concerned,the depth of use of digital finance is the key for digital finance to promote high-quality economic development.(3)In addition to promoting high-quality economic development by exerting its own financial functions,digital finance can also stimulate the financial system to improve service intermediary functions and resource allocation functions through external influences,and indirectly promote high-quality economic development.(4)Targeted digital financial supervision can enhance the role of digital finance in promoting high-quality economic development,and the role of digital finance in promoting high-quality economic development will be affected by regions.Specifically,the western region is larger than the central region,and the eastern region is the smallest.Therefore,this paper combines the results of theoretical analysis and empirical analysis,from the four aspects of digital financial infrastructure,digital financial products and services,digital financial supervision and supply-side structural reform of the financial system,for the healthy development of the digital financial industry and the active promotion of my country’s economy.Provide policy advice on highquality development and supply-side structural reform of the financial industry.