Trade openness, internet finance development and banking sector development in China

Junhui Fu, Yufang Liu, Rongda Chen, Xiaojian Yu and Wen Tang

Economic Modelling, 2020, vol. 91, issue C, 670-678

Abstract: This paper investigates the impact of trade openness on Internet finance development in China. Using a unique panel data set for 29 Chinese provinces, we find that trade openness has a positive impact on Internet finance development and is a leading indicator of Internet finance development. Further analyses show that higher trade openness is associated with faster Internet finance development in wealthier provinces. Moreover, we investigate the effect of Internet finance development on the banking sector development. The empirical results suggest that Internet finance development has a positive effect on the banking sector size and efficiency.

Keywords: Trade openness; Internet finance development; Banking sector size; Banking sector efficiency (search for similar items in EconPapers)
JEL-codes: F13 G21 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:91:y:2020:i:c:p:670-678

DOI: 10.1016/j.econmod.2019.12.008

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