Digital finance and global economic governance: How financial technology reshapes transnational cooperation and competition

Abstract

Based on panel data from multiple countries spanning 2001 to 2023, this paper empirically examines the impact of digital finance on transnational cooperation and competition. The empirical results indicate that digital finance significantly enhances transnational cooperation; digital finance also significantly boosts transnational competition; research and development (R&D) expenditure plays a positive moderating role between digital finance and transnational cooperation, while geopolitical risk exerts a negative moderating effect between digital finance and transnational competition; the influence of digital finance on transnational cooperation exhibits significant heterogeneity under different national levels of economic development; similarly, the impact of digital finance on transnational competition also presents significant heterogeneity across countries with varying economic development levels. Based on these findings, this paper suggests that countries should accelerate the construction of digital financial infrastructure, strengthen support for R&D innovation, and maintain international political stability.