This article examines how artificial intelligence (AI) drives the development of finance with Chinese characteristics (FCC) and the mechanisms through which the new-generation AI innovation and development pilot zone (NGAIIDPZ) influences FCC.
An FCC evaluation system is built across five dimensions: technology finance, green finance, inclusive finance, pension finance and digital finance. FCC levels from 2013 to 2021 are measured using the entropy weight method. The rollout of NGAIIDPZ is used as a quasi-natural experiment to assess its influence.
First, FCC development has consistently increased over the years. Notably, digital finance and technology finance have experienced prominent growth, whereas the contribution of green finance has steadily declined. In addition, FCC development in the eastern region has surpassed that of the central and western areas. Second, NGAIIDPZ has significantly enhanced the overall level of FCC and positively influenced all five subdimensions. However, the magnitude and statistical significance of these effects vary substantially among the different dimensions. Third, the rise in informatization level, financial agglomeration and innovation resource mismatch further strengthens the beneficial effects of the NBDPZ on FCC development.
This article provides a comprehensive FCC evaluation framework and first empirical evidence on how AI policies shape FCC development, and highlights regional heterogeneity and the reinforcing roles of informatization level, financial agglomeration and innovation resource allocation.
