The nonlinear impact of FinTech on the real economic growth: evidence from China

Financial technology (FinTech) in promoting the real economy is a topic attracting much attention. This paper adopts a threshold regression model to solve the endogenous problem well and make up for the lack of empirical evidence of scientific models in existing research in this area. The empirical results show that FinTech has a significant promoting effect on real economic growth, manifested as a U-shaped relationship and double threshold effect. In the early stage of FinTech development, it will restrain economic growth. The continuous improvement will positively impact economic growth, and the result shows a law of marginal decline. Moreover, there are significant regional differences in the nonlinear characteristics. Our research has solid practical significance and contributes to the literature on the effects of FinTech on real economic growth.