Research Article
Research on the Impact of Financial Development on Technological Innovation in Labor-intensive Industries: Based on Two-way Fixed Effects Model
@INPROCEEDINGS{10.4108/eai.9-12-2022.2327585, author={Xiao Zheng}, title={Research on the Impact of Financial Development on Technological Innovation in Labor-intensive Industries: Based on Two-way Fixed Effects Model}, proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2023}, month={3}, keywords={financial development; labor-intensive industries; technological innovation; fixed effects model}, doi={10.4108/eai.9-12-2022.2327585} }- Xiao Zheng
Year: 2023
Research on the Impact of Financial Development on Technological Innovation in Labor-intensive Industries: Based on Two-way Fixed Effects Model
MSIEID
EAI
DOI: 10.4108/eai.9-12-2022.2327585
Abstract
Based on the current reality that China's factor endowment and comparative ad-vantage should develop labor-intensive industries and the country's strategic requirement of building an innovative country, matching financial development with the technological innovation requirements of labor - intensive industries is both an objective requirement of China's national conditions and a theoretical requirement of the great reality of building an innovative country. To study the impact of financial development on labor-intensive industry innovation, this paper is based on the panel data of 30 provinces in China from 2011 to 2020, the paper applies the two-way fixed effects model, this paper empirically tests the influence of financial development on technological innovation in labor-intensive industries. The results show that the financial correlation ratio has an inverted U-shaped influence on the technological innovation of labor-intensive industries, the development of digital finance has a significant positive promoting effect on the technological innovation of labor-intensive industries, indirect financing is more conducive to the technological innovation of labor-intensive industries, and the concentration of banks is not conducive to the technological innovation of labor-intensive industries.