Econometric Analysis of Disequilibrium Relations Between Internet Finance and Real Economy in China

DOI

10.2991/ijcis.d.191128.001How to use a DOI?

Keywords

Internet finance; Real economy; Disequilibrium relations; Financial interrelations ratio (FIR)

Abstract

In this paper, we evaluate the development level of internet finance by focusing on three major virtual economies, internet “Baby” fund, internet financial credit and Shanghai Composite Index for the first time. We examine the disequilibrium relations between the development of both internet finance and real economy by using Vector Autoregression (VAR) model, and measure the level of the deviation between them by using Financial Interrelations Ratio (FIR). We obtain the following results: 1) There is no Granger causality between internet finance and real economy, and the characteristics of non-balanced development is shown; 2) Their synergy is in the development stage of “mismatch”; 3) During the later stage of sample observation, internet financial credit is the key element of the mutual restraint between internet finance and real economy, and the deviation between stock market and real economy is within the controllable range.

Copyright

© 2019 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - JOUR
AU  - Yixiao Li
AU  - Xin Jin
AU  - Wenwen Tian
PY  - 2019
DA  - 2019/12/03
TI  - Econometric Analysis of Disequilibrium Relations Between Internet Finance and Real Economy in China
JO  - International Journal of Computational Intelligence Systems
SP  - 1454
EP  - 1464
VL  - 12
IS  - 2
SN  - 1875-6883
UR  - https://doi.org/10.2991/ijcis.d.191128.001
DO  - 10.2991/ijcis.d.191128.001
ID  - Li2019
ER  -