Impact of Broadband China Infrastructure Strategy on Fintech: A Quasi-Natural Experiment

Abstract

Fintech has made an important contribution to the inclusive and sustainable balanced development of the digital economy, and how to improve its development has become a research hotspot. This paper utilizes the Broadband China strategy approved in 2013 as the policy shock, and constructs a DID model to analyze the impact of new infrastructure construction on fintech. The study shows that new infrastructure construction is conducive to the improvement of fintech, and this impact is realized through the all-encompassing expansion of the breadth of fintech coverage and further exploration of the depth of its use. Moreover, heterogeneity studies find that the driving effect of new infrastructure construction on fintech is more prominent in eastern cities, sub-provincial cities, large-scale cities and cities with low levels of traditional infrastructure. This study not only provides evidence for assessing the policy effect of new infrastructure construction, but also provides theoretical and empirical support for how the state promotes the development of fintech, which has certain policy implications.