Relationship Between Digital Finance and Industrial Upgrading Based on Spatial Panel Data Model

Implementing the development of China’s global industrial chain and value chain to medium and high-end is the key to high-quality economic development. At the same time, China’s rapidly developing digital finance gives a rare opportunity for industrial upgrading. From the perspective of optimizing financial functions, this paper shows the theory of digital finance affecting industrial upgrading, explains the spatial effect of digital finance on industrial upgrading and analyzes the intermediary effect of technological innovation between digital finance and industrial upgrading. Then, corresponding to the hypothesis, the ordinary panel model, Spatial Panel Durbin Model (SPDM) and intermediary model are constructed respectively. The results show that digital finance has a positive impact on industrial upgrading, both the digital finance in this region and in neighboring regions will positively affect the industrial upgrading in this region and technological innovation plays an indirect role. It is proposed to speed up the construction of digital financial infrastructure and narrow the digital gap among the eastern, central and western regions, strongly support the combination of digital technology and financial industry, improve the reform of the financial system, expand the inclusiveness of finance, and provide financial service for high-tech industries.