Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance
Research on the driving role of digital finance in urban innovation is scarce. Most existing literature focuses on whether digital or traditional finance contributes more to innovation, ignoring the spatial spillover effect of digital finance and failing to explore whether digital finance complement...
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| Format: | Article |
| Language: | English |
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Ital Publication
2025-02-01
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| Series: | Emerging Science Journal |
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| Online Access: | https://ijournalse.org/index.php/ESJ/article/view/2891 |
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| author | Xiaoling Song Xuan Qin Wanmeng Wang Rita Yi Man Li |
| author_facet | Xiaoling Song Xuan Qin Wanmeng Wang Rita Yi Man Li |
| author_sort | Xiaoling Song |
| collection | DOAJ |
| description | Research on the driving role of digital finance in urban innovation is scarce. Most existing literature focuses on whether digital or traditional finance contributes more to innovation, ignoring the spatial spillover effect of digital finance and failing to explore whether digital finance complements traditional finance in promoting innovation. Moreover, current studies focus on the provincial dimension but elaborate very little on the implications of BRI node cities. This study fills in the gaps by focusing on the spatial spillover effects of digital finance on urban innovation and complementary functions of traditional finance. It applies the spatial Durbin model to 26 China BRI node cities from 2013 to 2020. The results indicated that digital finance has a significant positive effect on the innovation level of these cities, suggesting that digital and traditional finance systems are complementary in promoting innovation. Moreover, the evidence of spatial spillover proves that innovations in node cities influence neighboring regions. This paper contributes to the interaction between digital finance and urban innovation with new insights. It also fills the literature gap by underlining the spatial dynamics rather than traditional panel approaches. The results are useful for policymakers in harnessing financial mechanisms for innovation and economic growth.
Doi: 10.28991/ESJ-2025-09-01-024
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| format | Article |
| id | doaj-art-9510713b7f7c44d9b2a7aeee31ba9b4e |
| institution | Kabale University |
| issn | 2610-9182 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Ital Publication |
| record_format | Article |
| series | Emerging Science Journal |
| spelling | doaj-art-9510713b7f7c44d9b2a7aeee31ba9b4e2025-02-08T14:26:27ZengItal PublicationEmerging Science Journal2610-91822025-02-019143345010.28991/ESJ-2025-09-01-024784Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional FinanceXiaoling Song0Xuan Qin1Wanmeng Wang2Rita Yi Man Li3Business School, Beijing Language and Culture University, Beijing 100083,Business School, Beijing Language and Culture University, Beijing 100083,Business School, Beijing Language and Culture University, Beijing 100083,Sustainable Real Estate Research Center, Hong Kong Shue Yan University, Hong Kong 999077,Research on the driving role of digital finance in urban innovation is scarce. Most existing literature focuses on whether digital or traditional finance contributes more to innovation, ignoring the spatial spillover effect of digital finance and failing to explore whether digital finance complements traditional finance in promoting innovation. Moreover, current studies focus on the provincial dimension but elaborate very little on the implications of BRI node cities. This study fills in the gaps by focusing on the spatial spillover effects of digital finance on urban innovation and complementary functions of traditional finance. It applies the spatial Durbin model to 26 China BRI node cities from 2013 to 2020. The results indicated that digital finance has a significant positive effect on the innovation level of these cities, suggesting that digital and traditional finance systems are complementary in promoting innovation. Moreover, the evidence of spatial spillover proves that innovations in node cities influence neighboring regions. This paper contributes to the interaction between digital finance and urban innovation with new insights. It also fills the literature gap by underlining the spatial dynamics rather than traditional panel approaches. The results are useful for policymakers in harnessing financial mechanisms for innovation and economic growth. Doi: 10.28991/ESJ-2025-09-01-024 Full Text: PDFhttps://ijournalse.org/index.php/ESJ/article/view/2891digital financefinancial inclusioninnovation levelspatial spilloverbelt and road initiativefintech. |
| spellingShingle | Xiaoling Song Xuan Qin Wanmeng Wang Rita Yi Man Li Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance Emerging Science Journal digital finance financial inclusion innovation level spatial spillover belt and road initiative fintech. |
| title | Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance |
| title_full | Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance |
| title_fullStr | Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance |
| title_full_unstemmed | Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance |
| title_short | Exploring the Spatial Spillovers of Digital Finance on Urban Innovation and Its Synergy with Traditional Finance |
| title_sort | exploring the spatial spillovers of digital finance on urban innovation and its synergy with traditional finance |
| topic | digital finance financial inclusion innovation level spatial spillover belt and road initiative fintech. |
| url | https://ijournalse.org/index.php/ESJ/article/view/2891 |
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