Research on the regional differences decomposition and convergence mechanism of development of Internet finance of eight urban agglomerations in China

LIU Chuanming1 WANG Huitong2 WEI Xiaomin3

(1.School of Economics, Central University of Finance and Economics)
(2.Institute for Finance and Economics Research, Central University of Finance and Economics)
(3.School of Business Administration, Anhui University of Finance and Economics)

【Abstract】Research objectives: this paper is to reveal the regional development disparity and its convergence mechanism of the Internet finance between eight urban agglomerations including Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei urban agglomeration, Central Plains urban agglomeration, Middle Reaches of the Yangtze River megalopolises, Harbin-Changchun megalopolises, Chengdu-Chongqing megalopolises, and North Bay megalopolises. Research methods: based on the monthly data (from March 2014 to December 2015) of index of development of Internet finance released by Ant Financial Database, this paper uses the Gini coefficient and decomposition method proposed by Dagum to decompose the regional gap of eight urban agglomerations in the development of internet finance; based on spatial panel data regression model, this paper tests the σ-Convergence, β-Convergence and Club-Convergence. Research findings: from March 2014 to December 2015, the overall regional development of Internet finance of eight urban agglomerations shows a declining trend; difference within the Pearl River Delta urban agglomeration is the biggest; the differences between regions is the main source of gap in Internet finance; development of Internet finance shows a typical σ-Convergence. Research innovations: to reveal the source of the regional differences in the development of Internet finance in eight urban agglomerations, and to empirically test the σ-Convergence, β-Convergence and Club-Convergence. Research value: to narrow the regional differences in the development of Internet finance, and promote the coordinated development of Internet finance in different urban agglomerations.

【Keywords】 Internet finance; regional difference; Gini coefficient; convergence;

【DOI】

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    Footnote

    [1]. ① Due to limited space, “3/14,” “5/14,” “7/14,” “9/14,” “11/14,” “1/15,” “3/15,” “5/15,” “7/15,” “9/15,” and “11/15” on the time axis in the Figure represent the time as March 2014, May 2014, July 2014, September 2014, November 2014, January 2015, March 2015, May 2015, July 2015, September 2015 and November 2015, respectively.

    [2]. ② The meaning of the time axis is the same as that in Figure 1.

    [3]. ③ The results of the disparities among urban agglomerations in the development of Internet finance are not listed here due to limited space. If necessary, please ask the authors for them.

    [4]. ① Due to limited space, “1,” “2,” “3,” “4,” “5,” “6,” “7,” and “8” are applied here to represent Beijing-Tianjin-Hebei urban agglomeration, Yangtze River Delta urban agglomeration, Pearl River Delta urban agglomeration, Middle Reaches of the Yangtze River megalopolises, Chengdu-Chongqing megalopolises, Harbin-Changchun megalopolises, Central Plains urban agglomeration and North Bay megalopolises, respectively. The meaning of the time axis is the same as that in Figure 1.

    [5]. ② The meaning of the time axis is the same as that in Figure 1.

    [6]. ① Due to limited space, “3/14,” “6/14,” “9/14,” “12/14,” “3/15,” “6/15,” “9/15,” and “12/15” are adopted here to represent March 2014, June 2014, September 2014, December 2014, March 2015, June 2015, September 2015, and December 2015, respectively.

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This Article

ISSN:1000-3894

CN:11-1087/F

Vol 34, No. 08, Pages 3-20

August 2017

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Article Outline

Abstract

  • Introduction
  • 1 Methods and data
  • 2 Decomposition of the regional difference in development of Internet finance and its sources
  • 3 Analysis on convergence mechanism of development of Internet finance
  • 4 Conclusions and policy recommendations
  • Footnote

    References