A study of the microevolution mechanism of internet finance in China from the perspective of the labour division Online publication date: Wed, 12-May-2021
by Xiongying Wang; Guocheng Xiang; Yadong Zhang; Zhi Yang
International Journal of Applied Decision Sciences (IJADS), Vol. 14, No. 3, 2021
Abstract: This paper aims to study the micro-evolution mechanism of internet finance from the perspective of the labour division. By using the theory of circuitous production, we construct an evolution model of labour division in internet finance industry, which has a dilemma between specialised economy and transaction efficiency of two sectors. By introducing transaction efficiency and the cost of learning internet finance, we internalise the level of specialisation and relative price, to expound the mechanism of inclusive rural finance in internet finance development. Based on the data of 31 provinces in China from 2011 to 2016, this paper reveals internet finance's positive impact on rural inclusive finance by improving transaction efficiency. In terms of the field, the positive impact of internet finance on rural inclusive finance is U-shaped. Finally, we have come to the conclusion that internet finance is the most important factor to push the rural inclusive finance forward in China.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Applied Decision Sciences (IJADS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com