FinTech and Sustainable Development: Evidence from China based on P2P Data

Abstract

In the current international context, the ways in which financial technology (FinTech) affects sustainable development need to be urgently identified. However, relevant studies are rare and there is no consensus on the optimal indicator system for sustainable development. Therefore, this study proposes an indicator system to evaluate sustainability and conducts in-depth analysis of the relationship between FinTech and sustainable development based on data of peer-to-peer platforms (P2P) in 31 Chinese provinces. The empirical results show the existence of a U-shaped relationship between FinTech and sustainable development, mainly determined by the pattern of extensive economic growth. Furthermore, heterogeneity analysis indicates that there are significant regional differences in its impact on sustainable development, being significant in China’s eastern and central regions and insignificant in the western region; moreover, the impact on the central region is significantly higher than that on the eastern region. Our research not only has strong practical significance but also contributes significantly to the literature on FinTech and sustainable development.

The Influence of Internet Finance on the Sustainable Development of the Financial Ecosystem in China

“…Different from previous literature [9,20,35], we studied the influence of internet finance ecological subject on the sustainable development of financial ecosystem from empirical perspectives. The risk transmission effect between the traditional financial ecological subjects has been studied [19], but the influence of internet finance on the financial ecosystem of the traditional financial industries has not been studied.…”

“…Ziolo et al [34] designed a more sustainable financial systems from a macro-perspective considering the roles of environment, society, and government in the decision-making process to realize sustainable development. Deng et al [35] proposed an indicator system to evaluate sustainability and supported the notions that there is a U-shaped relationship between the financial technology (fintech) and sustainable development and there are significant regional differences in the influence of fintech on sustainable development. Wang et al [36] studied the relationship between internet finance, green finance, and sustainability.…”

The FinTech Dividend: How Much Money Is FinTech Likely to Mobilize for Sustainable Development?

“…Figure 6 shows the results of regressions looking at composites of sustainable development and the number of FinTechs in China. 40 In their study, they have done the same thing we would do -for a composite for development (although we might use the SDGs themselves). 41 Their FinTech industry variable looks at the number of Fintechs in China -hardly a definitive measure.…”

“…As both the x and y variables represent rescaled composites, we do not label these in the figure. Source:Deng et al (2019).…”

Boosting Sustainability in Healthcare Sector through Fintech: Analyzing the Moderating Role of Financial and ICT Development

“… 19 Not only the technological progression of financial instruments have built just and equitable societies, 20 but they also provide ecological benefits by accelerating the resource allocation to environmental infrastructure and renewable energy leading to sustainable development. 21 …”