Research on the Development and Influence on the Real Economy of Digital Finance: The Case of China

Based on the panel data of 31 provinces in China from 2011 to 2020, this paper analyzes the development status and distribution characteristics of digital finance, and studies the impact of digital finance on the growth of the real economy. First, whether China's digital finance development can be classified by region through quartile images is investigated, and whether there are differences in the development of digital finance between regions and within regions is explored. Then, the dynamic characteristics of regional digital finance development distribution are analyzed by kernel density estimation, and the regression model is constructed to analyze the effect of digital finance development on promoting the growth of the real economy. The numerical result shows that the development characteristics of digital finance are different between regions and within regions, and the development of digital finance can significantly promote the growth of the real economy.