A Study On The Impact Of Financial Support On The Development Of Cultural Industries

As a special economic form,the cultural industry has important strategic significance for the transformation of China’s economy from high-speed development to high-quality development.The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China clearly established building a cultural power as one of the long-term goals of basically achieving socialist modernization by 2035[1]Achieving high-quality and efficient development of the cultural industry is also an important means to enhance cultural confidence and build a cultural power.However,due to factors such as a single investment and financing channel,inadequate supporting facilities,and asymmetric information among market entities,the cultural and financial industries cannot achieve deep integration,which to some extent hinders their innovative development.Based on this,existing research must explore how adverse conditions arise,learn from advanced practical development paths abroad,and creatively address the difficulties of financial support in the development of the cultural industry.This article focuses on the impact of financial support on the development of the cultural industry in China.Firstly,it summarizes the current development status,financial support status,and main problems of the cultural industry in China,and summarizes relevant literature.Then,it uses a bidirectional fixed effects model to analyze the impact of financial support on the development level of the cultural industry,including money market services,capital market services,insurance market services,and their interaction terms,Moreover,by setting dummy variables,it separately considered that the COVID-19 would affect the development of the cultural industry by affecting the development of the financial market.At the same time,robustness tests were conducted through the systematic generalized moment method(SYS-GMM),panel interaction fixed effect model,replacement of core explanatory variables and other methods.Finally,heterogeneity analysis was conducted.Based on the above analysis,the following conclusions can be drawn:(1)From a spatial perspective,the total factor productivity of China’s cultural industry is on the rise,but there are still some provinces experiencing efficiency losses.Among the three major regions,the cultural total factor productivity in the central and western regions is growing faster and has greater potential compared to the eastern region.From a time perspective,both the cultural industry total factor productivity index(GML index)and the technological efficiency change index(TECH index)show a downward trend,while the technological progress change index(TEECH index)shows an upward trend,indicating that the GML index is more sensitive to technological efficiency changes.(2)Financial support presents differences in the development of cultural industries in the financial market.From a single perspective,the financial support of the credit market and the insurance market have a significant positive impact on the development level of the cultural industry,both of which promote the development of the cultural industry.However,the financial support of the capital market shows a significant nonlinear relationship with the development of the cultural industry,specifically manifested as an inverted "U" shape.From an interactive perspective,the interaction between monetary market financial support and capital market financial support,as well as the interaction between monetary market financial support and insurance market financial support,has a negative impact on the development of the cultural industry,manifested as a substitution relationship.The interactive effect of financial support in the capital market and insurance market on the development of the cultural industry is not significant.(3)The impact of financial support on the development of cultural industries shows significant regional differences.Compared to the eastern region,the development effect of financial support on cultural industries in the central and western regions is more pronounced,mainly manifested in the heterogeneous effects of monetary market financial support and capital market financial support.The positive impact of financial support on GML in the cultural industry is mainly manifested in its impact on TECH.The GML index of the cultural industry is relatively sensitive to changes in operational management efficiency.Finally,starting from the problems in financial support for China’s cultural industry,this article provides countermeasures and suggestions for various provinces(cities)to adapt their cultural industries to the trend of the new era:Firstly,the government can strengthen financial support for the cultural industry through various means and establish financial risk prevention mechanisms.Second,the cultural industry uses diversified channels for financing and introduces Financial innovation technology.Injecting new impetus into the development of the cultural industry.Thirdly,at the enterprise level,internal management can be strengthened,external cooperation can be strengthened,and business models can be innovated to create more business value.