Internet Penetration and Regional Financial Development in China: Empirical Evidence Based on Chinese Provincial Panel Data

The Internet has revolutionized the patterns of financial development and economic growth. To assess the impacts of internet penetration on the financial industry, this paper analyzed ten-year Chinese provincial panel data and concluded that regional Internet penetration accelerates financial development. Furthermore, the efficiency of Internet investment in underdeveloped provinces is better than that in developed provinces. More meaningfully, Internet penetration promotes the transparency of the securities market and regional financial participation. This indicates that Internet technology facilitates the advancement of the finance industry and the securities market.