Financialization, Monetary Policy and Technological Innovation

Yang Cai; Xiaojing Hao; Enhao Han; Ke Gao

doi:doi:10.11648/j.hss.20190701.11

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Financialization, Monetary Policy and Technological Innovation

Yang Cai, Xiaojing Hao, Enhao Han, Ke Gao

Published in Humanities and Social Sciences (Volume 7, Issue 1)

Received: 22 November 2018 Published: 1 February 2019

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Abstract

Based on the research hotspot and the established status of the real economy financialization, this paper examines the impact of financialization on regional innovation from a macro perspective. In theory, economic financialization has an impact on regional innovation mainly through innovative “water reservoir effect” and “crowding effect”, and the overall impact depends on the net effect of the two. In view of this, based on the 2008-2016 provincial panel data, this paper analyzes the specific effects of regional financialization on technological innovation and analyzes the transmission path of effects based on the spread of financial regions. The study finds that, on the whole, financialization has a negative overall effect on regional innovation, and this conclusion is still stable after using the instrumental variable test. After considering the spatial factors, the financialization has a positive and spatial relationship between the regions, indicating that the financialization has a tendency to spread between regions; at the same time, the impact of financialization on regional technological innovation is still significantly negative. Considering the location heterogeneity, it is found that the negative effects of financialization are more significant in the central and eastern regions. After further examining the monetary policy, it is found that the relatively loose monetary policy actually strengthens the “crowding out effect” and further worsens the suppression of innovation by financialization. The research of this paper supplements the relevant research on the development and impact of China's financialization at the macro level, and provides important empirical evidence for the government's guiding funds to “deviate from reality”.

Published in	Humanities and Social Sciences (Volume 7, Issue 1)
DOI	10.11648/j.hss.20190701.11
Page(s)	1-13
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Regional Financialization, Regional Innovation, Monetary Policy

References

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APA Style

Yang Cai, Xiaojing Hao, Enhao Han, Ke Gao. (2019). Financialization, Monetary Policy and Technological Innovation. Humanities and Social Sciences, 7(1), 1-13. https://doi.org/10.11648/j.hss.20190701.11

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ACS Style

Yang Cai; Xiaojing Hao; Enhao Han; Ke Gao. Financialization, Monetary Policy and Technological Innovation. Humanit. Soc. Sci. 2019, 7(1), 1-13. doi: 10.11648/j.hss.20190701.11

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AMA Style

Yang Cai, Xiaojing Hao, Enhao Han, Ke Gao. Financialization, Monetary Policy and Technological Innovation. Humanit Soc Sci. 2019;7(1):1-13. doi: 10.11648/j.hss.20190701.11

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@article{10.11648/j.hss.20190701.11,
  author = {Yang Cai and Xiaojing Hao and Enhao Han and Ke Gao},
  title = {Financialization, Monetary Policy and Technological Innovation},
  journal = {Humanities and Social Sciences},
  volume = {7},
  number = {1},
  pages = {1-13},
  doi = {10.11648/j.hss.20190701.11},
  url = {https://doi.org/10.11648/j.hss.20190701.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20190701.11},
  abstract = {Based on the research hotspot and the established status of the real economy financialization, this paper examines the impact of financialization on regional innovation from a macro perspective. In theory, economic financialization has an impact on regional innovation mainly through innovative “water reservoir effect” and “crowding effect”, and the overall impact depends on the net effect of the two. In view of this, based on the 2008-2016 provincial panel data, this paper analyzes the specific effects of regional financialization on technological innovation and analyzes the transmission path of effects based on the spread of financial regions. The study finds that, on the whole, financialization has a negative overall effect on regional innovation, and this conclusion is still stable after using the instrumental variable test. After considering the spatial factors, the financialization has a positive and spatial relationship between the regions, indicating that the financialization has a tendency to spread between regions; at the same time, the impact of financialization on regional technological innovation is still significantly negative. Considering the location heterogeneity, it is found that the negative effects of financialization are more significant in the central and eastern regions. After further examining the monetary policy, it is found that the relatively loose monetary policy actually strengthens the “crowding out effect” and further worsens the suppression of innovation by financialization. The research of this paper supplements the relevant research on the development and impact of China's financialization at the macro level, and provides important empirical evidence for the government's guiding funds to “deviate from reality”.},
 year = {2019}
}

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TY  - JOUR
T1  - Financialization, Monetary Policy and Technological Innovation
AU  - Yang Cai
AU  - Xiaojing Hao
AU  - Enhao Han
AU  - Ke Gao
Y1  - 2019/02/01
PY  - 2019
N1  - https://doi.org/10.11648/j.hss.20190701.11
DO  - 10.11648/j.hss.20190701.11
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 1
EP  - 13
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20190701.11
AB  - Based on the research hotspot and the established status of the real economy financialization, this paper examines the impact of financialization on regional innovation from a macro perspective. In theory, economic financialization has an impact on regional innovation mainly through innovative “water reservoir effect” and “crowding effect”, and the overall impact depends on the net effect of the two. In view of this, based on the 2008-2016 provincial panel data, this paper analyzes the specific effects of regional financialization on technological innovation and analyzes the transmission path of effects based on the spread of financial regions. The study finds that, on the whole, financialization has a negative overall effect on regional innovation, and this conclusion is still stable after using the instrumental variable test. After considering the spatial factors, the financialization has a positive and spatial relationship between the regions, indicating that the financialization has a tendency to spread between regions; at the same time, the impact of financialization on regional technological innovation is still significantly negative. Considering the location heterogeneity, it is found that the negative effects of financialization are more significant in the central and eastern regions. After further examining the monetary policy, it is found that the relatively loose monetary policy actually strengthens the “crowding out effect” and further worsens the suppression of innovation by financialization. The research of this paper supplements the relevant research on the development and impact of China's financialization at the macro level, and provides important empirical evidence for the government's guiding funds to “deviate from reality”.
VL  - 7
IS  - 1
ER  -

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Author Information

Yang Cai

School of Management Science and Engineering, Central University of Finance and Economics, Beijing, P. R. China
Xiaojing Hao

School of Public Finance and Tax, Central University of Finance and Economics, Beijing, P. R. China
Enhao Han

China Merchants Bank, Shanghai, P. R. China
Ke Gao

Development Research Center of Shandong Provincial People’s Government, Jinan, P. R. China

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APA Style

Yang Cai, Xiaojing Hao, Enhao Han, Ke Gao. (2019). Financialization, Monetary Policy and Technological Innovation. Humanities and Social Sciences, 7(1), 1-13. https://doi.org/10.11648/j.hss.20190701.11

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ACS Style

Yang Cai; Xiaojing Hao; Enhao Han; Ke Gao. Financialization, Monetary Policy and Technological Innovation. Humanit. Soc. Sci. 2019, 7(1), 1-13. doi: 10.11648/j.hss.20190701.11

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AMA Style

Yang Cai, Xiaojing Hao, Enhao Han, Ke Gao. Financialization, Monetary Policy and Technological Innovation. Humanit Soc Sci. 2019;7(1):1-13. doi: 10.11648/j.hss.20190701.11

Copy | Download

@article{10.11648/j.hss.20190701.11,
  author = {Yang Cai and Xiaojing Hao and Enhao Han and Ke Gao},
  title = {Financialization, Monetary Policy and Technological Innovation},
  journal = {Humanities and Social Sciences},
  volume = {7},
  number = {1},
  pages = {1-13},
  doi = {10.11648/j.hss.20190701.11},
  url = {https://doi.org/10.11648/j.hss.20190701.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20190701.11},
  abstract = {Based on the research hotspot and the established status of the real economy financialization, this paper examines the impact of financialization on regional innovation from a macro perspective. In theory, economic financialization has an impact on regional innovation mainly through innovative “water reservoir effect” and “crowding effect”, and the overall impact depends on the net effect of the two. In view of this, based on the 2008-2016 provincial panel data, this paper analyzes the specific effects of regional financialization on technological innovation and analyzes the transmission path of effects based on the spread of financial regions. The study finds that, on the whole, financialization has a negative overall effect on regional innovation, and this conclusion is still stable after using the instrumental variable test. After considering the spatial factors, the financialization has a positive and spatial relationship between the regions, indicating that the financialization has a tendency to spread between regions; at the same time, the impact of financialization on regional technological innovation is still significantly negative. Considering the location heterogeneity, it is found that the negative effects of financialization are more significant in the central and eastern regions. After further examining the monetary policy, it is found that the relatively loose monetary policy actually strengthens the “crowding out effect” and further worsens the suppression of innovation by financialization. The research of this paper supplements the relevant research on the development and impact of China's financialization at the macro level, and provides important empirical evidence for the government's guiding funds to “deviate from reality”.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Financialization, Monetary Policy and Technological Innovation
AU  - Yang Cai
AU  - Xiaojing Hao
AU  - Enhao Han
AU  - Ke Gao
Y1  - 2019/02/01
PY  - 2019
N1  - https://doi.org/10.11648/j.hss.20190701.11
DO  - 10.11648/j.hss.20190701.11
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 1
EP  - 13
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20190701.11
AB  - Based on the research hotspot and the established status of the real economy financialization, this paper examines the impact of financialization on regional innovation from a macro perspective. In theory, economic financialization has an impact on regional innovation mainly through innovative “water reservoir effect” and “crowding effect”, and the overall impact depends on the net effect of the two. In view of this, based on the 2008-2016 provincial panel data, this paper analyzes the specific effects of regional financialization on technological innovation and analyzes the transmission path of effects based on the spread of financial regions. The study finds that, on the whole, financialization has a negative overall effect on regional innovation, and this conclusion is still stable after using the instrumental variable test. After considering the spatial factors, the financialization has a positive and spatial relationship between the regions, indicating that the financialization has a tendency to spread between regions; at the same time, the impact of financialization on regional technological innovation is still significantly negative. Considering the location heterogeneity, it is found that the negative effects of financialization are more significant in the central and eastern regions. After further examining the monetary policy, it is found that the relatively loose monetary policy actually strengthens the “crowding out effect” and further worsens the suppression of innovation by financialization. The research of this paper supplements the relevant research on the development and impact of China's financialization at the macro level, and provides important empirical evidence for the government's guiding funds to “deviate from reality”.
VL  - 7
IS  - 1
ER  -

Copy | Download