Dynamics between FinTech and financial market: Supply-driven or Demand-guided?
This paper examined the dynamic relationship between FinTech development and financial development using the time-varying parameter structural vector autoregression (TVP-SV-VAR) model to analyze their impulse response relationship. The results showed that the impact of FinTech development on financi...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
AIMS Press
2024-10-01
|
| Series: | Quantitative Finance and Economics |
| Subjects: | |
| Online Access: | https://www.aimspress.com/article/doi/10.3934/QFE.2024025 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832590257766268928 |
|---|---|
| author | Zekai Tu Runze Yang Cunyi Yang |
| author_facet | Zekai Tu Runze Yang Cunyi Yang |
| author_sort | Zekai Tu |
| collection | DOAJ |
| description | This paper examined the dynamic relationship between FinTech development and financial development using the time-varying parameter structural vector autoregression (TVP-SV-VAR) model to analyze their impulse response relationship. The results showed that the impact of FinTech development on financial development varies across different periods. In China, before the first half of 2021, financial development mainly drove FinTech development through demand. Afterward, FinTech development promoted financial development by providing new technological tools and services. In the United States, FinTech innovation and application mainly influenced financial development through supply-driven mechanisms. After the second half of 2022, as FinTech infrastructure improved, its positive impact on the financial market strengthened. The study also found that the effects of policy changes and market fluctuations on impulse responses at specific time points differed even in countries with different systems. The findings of this paper provide valuable insights for policymakers to address the challenges and opportunities brought on by FinTech. |
| format | Article |
| id | doaj-art-63e803591d9a4707933187d6cb5433ec |
| institution | Kabale University |
| issn | 2573-0134 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | AIMS Press |
| record_format | Article |
| series | Quantitative Finance and Economics |
| spelling | doaj-art-63e803591d9a4707933187d6cb5433ec2025-01-24T01:12:54ZengAIMS PressQuantitative Finance and Economics2573-01342024-10-018465867710.3934/QFE.2024025Dynamics between FinTech and financial market: Supply-driven or Demand-guided?Zekai Tu0Runze Yang1Cunyi Yang2School of Finance, Shanghai University of Finance and Economics, Shanghai, ChinaSchool of Finance, Shanghai University of Finance and Economics, Shanghai, ChinaLingnan College, Sun Yat-sen University, Guangzhou, ChinaThis paper examined the dynamic relationship between FinTech development and financial development using the time-varying parameter structural vector autoregression (TVP-SV-VAR) model to analyze their impulse response relationship. The results showed that the impact of FinTech development on financial development varies across different periods. In China, before the first half of 2021, financial development mainly drove FinTech development through demand. Afterward, FinTech development promoted financial development by providing new technological tools and services. In the United States, FinTech innovation and application mainly influenced financial development through supply-driven mechanisms. After the second half of 2022, as FinTech infrastructure improved, its positive impact on the financial market strengthened. The study also found that the effects of policy changes and market fluctuations on impulse responses at specific time points differed even in countries with different systems. The findings of this paper provide valuable insights for policymakers to address the challenges and opportunities brought on by FinTech.https://www.aimspress.com/article/doi/10.3934/QFE.2024025fintechfinance developmenttvp-sv-varsupply-demand relationship |
| spellingShingle | Zekai Tu Runze Yang Cunyi Yang Dynamics between FinTech and financial market: Supply-driven or Demand-guided? Quantitative Finance and Economics fintech finance development tvp-sv-var supply-demand relationship |
| title | Dynamics between FinTech and financial market: Supply-driven or Demand-guided? |
| title_full | Dynamics between FinTech and financial market: Supply-driven or Demand-guided? |
| title_fullStr | Dynamics between FinTech and financial market: Supply-driven or Demand-guided? |
| title_full_unstemmed | Dynamics between FinTech and financial market: Supply-driven or Demand-guided? |
| title_short | Dynamics between FinTech and financial market: Supply-driven or Demand-guided? |
| title_sort | dynamics between fintech and financial market supply driven or demand guided |
| topic | fintech finance development tvp-sv-var supply-demand relationship |
| url | https://www.aimspress.com/article/doi/10.3934/QFE.2024025 |
| work_keys_str_mv | AT zekaitu dynamicsbetweenfintechandfinancialmarketsupplydrivenordemandguided AT runzeyang dynamicsbetweenfintechandfinancialmarketsupplydrivenordemandguided AT cunyiyang dynamicsbetweenfintechandfinancialmarketsupplydrivenordemandguided |