Impacts of Technology Finance And Technological Innovation On Economic Growth of Jingjinji Region China

liu hong (1), Ashfaque Gilal (2), Nor Asmat Ismail (3)
(1) School of Economics and Management, Tianjin TianShi College, China,
(2) Department of Business Administration, Sukkur IBA University, Pakistan,
(3) School of Social Sciences, Universiti Sains Malaysia, Malaysia

Abstract

This study investigates the impact of technology finance and technological innovation on economic growth in the Beijing-Tianjin-Hebei (Jingjinji) region, while also exploring whether this relationship is nonlinear and moderated by technology finance. Using panel data from 2000 to 2021, the study constructs indices for technology finance and technological innovation through principal component analysis (PCA) and applies a threshold regression model. The findings reveal that technological innovation has a stronger positive effect on economic growth when the technology finance index is below or equal to a threshold of 1.459. Beyond this threshold, the impact of innovation diminishes. Additionally, financial development and financial openness positively influence growth, while higher college enrollment ratios have a negative effect. Comparing regional data, the study observes that Beijing has surpassed the technology finance threshold, reducing the positive impact of innovation, whereas Tianjin and Hebei remain below the threshold. The study recommends decreasing technology finance in Beijing and increasing it in Tianjin and Hebei to enhance growth in the region. It also advises the Chinese government to develop comprehensive policies to strengthen financial development and financial openness in the Jingjinji region.

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Authors

liu hong
Ashfaque Gilal
ashfaque.ali@iba-suk.edu.pk (Primary Contact)
Nor Asmat Ismail
Author Biographies

liu hong, School of Economics and Management, Tianjin TianShi College

Ms Liu Hong has been working as an Associate Professor of Economics at Tianjin Tianshi College, in China. She is now doing PhD in Financial Economics at Universiti Sains Malaysia. She has published many research papers in well reputable journals. She is looking for collaboration to conduct joint research ventures in the field of international economics.

Ashfaque Gilal, Department of Business Administration, Sukkur IBA University

Ashfaque Ali Gilal has been working as an Assistant Professor of Economics at Sukkur IBA University Sukkur Sindh Pakistan. Currently, he is doing PhD in international economics from Universiti Sains Malaysia. He has published high-quality research papers in peer-reviewed journals.

Nor Asmat Ismail, School of Social Sciences, Universiti Sains Malaysia

Dr Nor Asmat Ismail is working as an Associate Professor of Economics at Universiti Sains Malaysia. She has been supervising masters and PhD students. She has produced highly competent graduates during her tenure of service. Besides, She has also published many research papers in high-ranked journals.

hong, liu, Gilal, A., & Nor Asmat Ismail. (2024). Impacts of Technology Finance And Technological Innovation On Economic Growth of Jingjinji Region China. Innovation Economics Frontiers, 27(2), 110–123. https://doi.org/10.36923/iefrontiers.v27i2.274

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