Open access Articles CC BY 4.0 October 20, 2024

Open Access Article Economics

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

Authors

Authors: liu hong1 , Ashfaque Gilal2,* , Nor Asmat Ismail3

Author info & affiliations
  1. School of Economics and Management, Tianjin TianShi College
  2. Department of Business Administration, Sukkur IBA University
  3. School of Social Sciences, Universiti Sains Malaysia
  4. * Author to whom correspondence should be addressed.

Publication: Innovation Economics Frontiers, Vol. 27 No. 2 (2024), pp. 110-123 https://doi.org/10.36923/iefrontiers.v27i2.274

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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.

Article information

Keywords
technological innovationtechnology financeJingjinji regionThreshold regression
Section
Articles
Issue
Vol. 27 No. 2 (2024)
Pages
110-123
Submitted
August 31, 2024
Published
October 20, 2024
Corresponding author
Ashfaque Gilal
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