Research on the Impact and Opportunities of the Digital Economy Promoting the Development of Real Economy

The digital economy has infused vitality into the transformation and development of the real economy,urging enterprises to break through core technological barriers,address bottleneck issues,and improve their core competitiveness.It fosters the comprehensive digital transformation of agriculture,manufacturing,and service sectors,improving the dynamism of the real economy and fostering more consumption hotspots.Efforts are underway to enhance industrial supply chains and innovation chains,optimize regional resource allocation,and promote a virtuous cycle within the real economy.Initiatives are being undertaken to standardize the development of digital economic platforms,promote the high-quality development of regional economies,and leverage the advantages of the socialist market economy with Chinese characteristics.

Data as a Factor of Production Promoting the Deep Integration of the Digital Economy and the Real Economy:Theoretical Logic and Analysis Framework

Data is the primary factor of production in the digital economy,playing a role in promoting the deep integration of the digital economy and the real economy and smoothing the national economic cycle.After entering the circulation system of the real economy,data is rapidly integrated into production,circulation,consumption,distribution,and other links.It optimizes resource allocation,unblocks circulation channels,promotes accurate matching of supply and demand,stimulates emerging demand,and forms a virtuous circle of digital technology application,traditional physical enterprise transformation,and technological innovation.Integrated development is an important feature of the digital economy.Data promotes the integration of factors of production,products,enterprises,industries,and markets,which fosters a circular system with deep integration of the digital economy and the real economy.To promote the deep integration of the digital economy and the real economy,the government and business entities should take measures to improve the circular efficiency of the digital economy and the real economy.These measures include attaching importance to the role of data-driven development,improving data capacity,data development,and utilization in enterprises,exploring diverse circulation models of enterprise data,and creating typical application scenarios and industrial data spaces.

Analysis of the Model and Mechanism for Integrated Development of the Digital Economy and the Real Economy

Promoting integrated development of the digital economy and the real economy is a strategic endeavor for China to bolster the burgeoning driving force of the real economy,establish a modern industrial system,achieve high-quality economic growth,and elevate international competitiveness.The essence of integrated development of the digital economy and the real economy lies in the restructuring and upgrading of input factors and production and operational models within traditional enterprises,enabling traditional enterprises to undergo a digital intelligence transformation and upgrade.This transformation is achieved by harnessing data factors,digital technologies,and digitalized intelligent products provided by the digital economy sector.In practice,the integration of the digital economy and the real economy takes place by incorporating digital technologies into the production and operational nodes of traditional enterprises,leading to the implementation of diverse integration modes,each with its own unique level of efficiency.At present,it is imperative for China to establish a division of labor and cooperation mechanism characterized by an efficient market and a proactive government to further promote integrated development of the digital economy and the real economy.

Promoting the Deep Digital-Real Economy Integration:Theory and Practice

With the rapid development and widespread application of new-generation digital technologies,the digital economy is playing an increasingly important role in driving China's high-quality economic development.As economic growth drivers undergo transformation,studying how to promote the deep integration of the digital economy and the real economy(digital-real economy integration)holds significant strategic importance.In general,the digital-real economy integration of China has made impressive advancements,becoming an irreversible trend.Nonetheless,there persist challenges that necessitate attention,such as the imperative to strengthen underlying technology support and improve the quality of integration.By integrating specific application scenarios of digital technology with traditional enterprise theory,we can gain a comprehensive understanding of how the digital economy empowers innovation and development in traditional enterprises,thereby facilitating the exploration of practical paths for the deep digital-real economy integration.A thorough examination of the main forms and connotations of this deep integration allows us to analyze specific paths across three key dimensions:product layer,enterprise layer,and industry layer.By adopting this approach,a research framework that promotes the deep digital-real economy integration can be established.

Can blockchain technology be effectively integrated into the real economy?Evidence from corporate investment efficiency

As a highly disruptive digital technology,blockchain provides new solutions for reshaping corporate governance mechanisms and improving resource allocation.We empirically examine the relationship between blockchain and corporate investment inefficiency.We find that blockchain can help improve corporate investment efficiency,and this result is valid after a series of robustness tests.Blockchain can not only significantly restrain overinvestment but also alleviate underinvestment.Reducing financing costs and alleviating agency conflicts are the two channels through which blockchain is associated with corporate investment efficiency,and financial reporting quality is the condition on which the channels depend.When the CEO holds few shares or the trade credit environment in the region where the company is located is poor,the effect of blockchain is more prominent than it is otherwise.Investment efficiency cannot be improved by blockchain for companies providing blockchain products or services to customers,only for those promoting their own operations and management with blockchain.Ultimately,blockchain can enhance companies’value by alleviating inefficient investment.We reveal the role of blockchain in corporate investment efficiency,furnish microeconomic evidence for the integration of digital technology and the real economy and provide implications for China to promote digital technology to drive high-quality company development.

Does the Establishment of Pilot Free Trade Zones Improve the Efficiency of Financial Services for the Real Economy?Empirical Evidence from Four Pilot Free Trade Zones in Shanghai,Tianjin,Guangdong,and Fujian

In the process of the high-quality transformation and development of China's economy,one of the issues that needs to be resolved is how to strengthen the ability of finance to serve the real economy and improve the efficiency of financial operations.Pilot Free Trade Zones(PFTZs),highlands of institutional innovation,have played the role of a natural testing ground for China to deepen its financial supply-side reform and improve the efficiency of financial services in the real economy.On that premise,this paper discusses the policy effects and transmission channels for the financial reform of PFTZs to improve the efficiency of financial services in the real economy within China.The findings of the papar are the followings,(1)The reform of PFTZsshas significantly improved the efficiency offinance in the real economy,having even achieved a sustainable effect.That is to say,with the extension of gment This work wasthe duration of free trade zone constructionand the gradual implementation of financialreform measures,the regional impactof financial services in the real economyhas shown a year-on-year upward trend.(2)The effects of financial agglomeration,financial transparency,and optimizationof financial infrastructure produced by thereform of PFTZs have played a significantregulatory role in the process of improvingthe efficiency of financial services in thefree trade zones.(3)The effect of China'sfinancial reform on PFTZs has fosterednoticeable regional diversity;an importantreason for the diversity of policy effectrests with the difference in transmissionmechanisms.The conclusions of this paper expand the research dimension of theliterature evaluating the effect of policy onPFTZs,and provide policy references fromthe perspective of financial reform in thefree trade zones for China to further deepenfinancial supply-side reform and improvethe efficiency of financial services in the realeconomy.

Hollowing out of the Real Economy： Evidence from China＇s Listed FirmsI

The paper studies an often-observed phenomenon of diversification of manufacturing firms into real estate development in East Asian economies. Utilizing a sudden change in China＇s accounting standards that requires firms to disclose information about their real estate holdings for investment purpose （or investment property）, we examine both the impact of such diversification on firms＇ investment in their original business and the stock market response to such diversification. Our results confirm there exists underinvestment in original business （or hollowing out of the real economy） for firms diversifying into real estate, and that there is a lack of investor response to such diversification, in both short-rim and long-run. Our study calls for further research on the role of real estate development in the long-run competitiveness of developing economies.

Does China’s Financial System Amplify Risks in the Real Economy?

The smooth operation of the financial system can promote economic growth by absorbing risks,while the risks breaking out in the financial system will drag down economic development through risk spillovers and amplification.On this basis,this paper uses secondary industry indices to build a risk spillover network between the real economy and the financial system,and discusses the risk absorption and amplification role of the financial system in China’s economy and finance from the perspective of industry.First,on the whole,the source of risks in China’s economic and financial system lies in the real economy.The financial system plays a role of risk absorption in China’s economic and financial system,demonstrating the professional risk management functions of the financial system.The risk absorption of the financial system is positively correlated with the risks in the real economy,and negatively correlated with the risks in the financial system.Second,from the perspective of the correlation between the financial sub-industry and the real economy,the banking sector has the closest relationship with the real economy and the lowest risk absorption capacity.Third,from the perspective of the internal correlation of the financial system,the internal network correlation of the financial system is asymmetric.Diversifi ed financial industry has stronger risk spillover effect on the banking industry and the insurance industry,while the insurance industry has stronger risk spillover effect on the banking industry.These results are essentially related to the functioning of the financial system,the internal relationship of the financial system and the relationship between the financial system and the real economy.

Serving the Real Economy

The subprime crisis that originated in the United States has prompted a global economic slowdown.In an interview with China Securities Journal, Li Yang, Director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, reflected on the lessons and opportunitiesthe crisis provides for China’s financial product innovation and development strategies.

Real Change for the Real Economy

With November’s consumer price index (CPI) growing at a staggering 5.1 percent, economic analysts are increasingly concerned about runaway inflation and excess liquidity in the Chinese market. Gu Shengzu, a member of the Standing Committee of the National People’s Congress and a renowned economist, pointed out it is the disordered flow of large-scale private capital that pushes up consumer prices and adds to worries about inflation. Gu offered suggestions on how to address the problem at a seminar on financial and strategic emerging industries recently held in Beijing. Edited excerpts follow:

Data-Empowered High-Quality Economic Development: Mechanisms and Pathways

To achieve high-quality economic development,it is imperative to prioritize the real economy and foster new factors for economic growth.Data,as a new factor of production,plays a pivotal role in facilitating the seamless integration between digital technology and the real economy.It possesses inherent attributes and techno-economic characteristics that enable the extraction of value across various processes,including production,transaction,consumption,and regulatory supervision.The integration with digital technology enhances the productivity and efficiency of the real economy by facilitating service sector digitalization,accelerating the growth of the new real economy,and supporting the virtual economy in its role of serving the real economy.At present,unleashing the value of data is hindered by inadequate fundamental systems for the data,a lack of activity in the transaction market,and the underutilization of the data as a factor of production by enterprises in the real economy.Therefore,it is advised that data be fully utilized to develop the real economy through the four-pronged approach of“enhancing support for the high-quality provision of the data,expediting the integration of the data into the real economy,promoting the high-quality development of the real economy,and enhancing public service and governance systems”.

ECONOMY

Fiscal and Financial Policy to Bolster Real EconomyChina will continue with stable macroeconomic policies and adopt a combination of fiscal and fnancial measures in an effort to boost domestic demand and bolster support for real economy, the State Council＇s executive meeting chaired by Premier Li Keqiang decided in the end of July.

Mobile App Economy

Dong Mingzhu,Chairperson of Zhuhai-based Gree Electric Appliances Inc.,recently said in a China Central Television dialogue program that,nowadays,many young people born in the 1990s are unwilling to work in the real economy(the part of the country’s economy

A Theory of Digital Economy Development:An Examination of the Practice of Chinese Platforms

Grasping the development trends and patterns of the digital economy and promoting the integrated development of the digital and the real economy is a strategic choice for China's construction of new competitive advantages.Based on case studies of the growth of e-commerce,this paper develops five microeconomic propositions about the following issues:the microeconomic features of data factor that differ from traditional production factors;optimal decision-making for digital enterprises;“data+platform”architecture,data transaction governance,and digital infrastructure supply.We apply these theoretical propositions to enterprise innovative practices in different application scenarios such as driverless vehicles and manufacturing digitalization.This paper provides a systematic and consistent theoretical framework for analyzing platform business model innovation and accurately identifying issues of institutional construction that promote the integrated development of the digital and the real economy.

Reform of Financial Institutions—— Getting it Right

The purpose of this article is to reflect upon the importance and the role of financial institutions before, during, and after the financial crisis and to outline proposals for alternative approaches to the financial crisis. Without an understanding of the historic development, nature and scope, and important limitations of modem financial institutions, the regulatory reform of modem financial institutions cannot be successful. The success of financial reforms and their restructuring can only be measured when modem financial institutions participate, support, and develop the real economy and support a more balanced, inclusive, and diverse social development process. This is what the really ＂exciting＂ banking and finance organizations should stand for. The regulatory reforms, bail-outs, and dominant ideas about the European banking union, for example, are impeding, rather than facilitating, hope for real economic and social recovery on both sides of the Atlantic. The method used in the present article, is legal and institutional analysis of the financial institutions. The empirical and comparative overview of the role and importance of financial institutions shows the variety of financial institutions developed in different historical and socio-economic circumstances. They show there is no one single best model of financial institutions that could be universally applicable. The design and the regulatory framework for the financial institutions should therefore take into account the overall strategy of economic and social development. In absence of any such comprehensive strategy it is unlikely that the regulatory reform of the financial institutions can be successful.

A Literature Review of the Influence of Commercial Credit on the Efficiency of Enterprise Capital Allocation

The real economy is the main body of high-quality development,and the efficiency of capital allocation is an important manifestation of the development of the real economy.Therefore,it is very important to study the efficiency of capital allocation.As a representative of horizontal finance,commercial credit has a significant impact on the improvement of capital allocation efficiency.In view of this,this article combs the literature on commercial credit and capital allocation efficiency from the following aspects:firstly,by studying the literature,combing the literature on the macro-level,micro-level and economic effects of commercial credit;secondly,the measurement method of capital allocation efficiency And the influencing factors are systematically sorted out,and finally sorted out and evaluated the existing literature on the influence of commercial credit on the efficiency of capital allocation.

Real atom economy and its application for evaluation the green degree of a process

Green chemistry has attracted more attention in the past century.Among the 12 principles of green chemistry,only atom economy and E factor can be expressed quantitatively to depict the impact of a chemical process to environment.Atom economy was thought better than the traditional yield for evaluating the atom efficiency of raw materials.But it is not enough to reflect the conversion degree of raw material.In this paper,we proposed the concept of real atom economy(RAE)as a metric.RAE could combine the above two factors together to better express the green degree of a process.We further suggested an equation to correlate E factor with RAE.The concept of RAE is proved to be helpful for estimating an environmentally benign process.

Research on the development of Sichuan financial technology

This paper studies the development of financial technology in Sichuan,and summarizes the concept,development stage and current situation of financial technology in Sichuan.Sichuan has made remarkable progress in the field of financial technology,especially in innovative applications and services to the real economy.This paper analyzes the opportunities and challenges of the development of financial technology,and discusses the application trend of artificial intelligence and blockchain technology in the financial field.In view of the development of fintech in Sichuan,this paper puts forward some strategic suggestions to strengthen the integration of talent training,infrastructure construction,risk prevention and control and real economy,so as to promote its healthy and rapid development and better serve the real economy and scientific and technological innovation.