Title: A study of the microevolution mechanism of internet finance in China from the perspective of the labour division

Authors: Xiongying Wang; Guocheng Xiang; Yadong Zhang; Zhi Yang

Addresses: Hunan University of Science and Technology, Xiangtan, Hunan, 411201, China ' Hunan University of Commerce, Changsha, Hunan, 410205, China ' Hunan University of Technology, Zhuzhou, Hunan, 412000, China ' Bank of Communications Co. Ltd. Hunan Branch, Changsha, Hunan,410205, China

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.

Keywords: internet finance; rural inclusive finance; inclusive finance.

DOI: 10.1504/IJADS.2021.114964

International Journal of Applied Decision Sciences, 2021 Vol.14 No.3, pp.303 - 320

Received: 05 Aug 2019
Accepted: 29 Dec 2019

Published online: 12 May 2021 *

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