Research On Financial Development,Industrial Evolution And Economic Growth

The researches related to financial development,industrial evolution and economic growth have been the hot topics among the academia and government sectors almost since the birth of development economics.In 2008,the global economic crisis induced by the financial sector gives a new meaning to the three aspects above.Hence,how to interpret and solve a series of issues induced by the three aspects must be an important topic for social and economic development of all nations in the future.The connotation of financial development has been very controversial in the academia ever since Goldsmith put forward the concept of financial development in 1969.Currently,developed countries are experiencing the rebalancing of financial development while under the background of their resources endowment,developing countries is facing a key issue concerning healthy economic development on account of financial repression caused by the development limitations or over-opening without complete systems,or both.Industrial evolution,as the important way of reallocating resources and promoting economic growth,needs to handle huge amounts of market information and balance the benefits as well as risks.However,there is no any effective mechanism which can complete such a great and exquisite task except finance.A lot of theories and practice show that finance offers industrial structure with upgrading funds,identifies credit,allocates resources and manages risks and then takes effect on industrial evolution as well as economic development by the way of influencing technological progress.Meantime,along with the continuous expansion and further openness of the global economy,industrial evolution has become the core of transformation of the economic growth mode,which has been the consensus of economists.However,it is clearly a challenging task to choose the different path of economic growth for the specific countries and regions with different resources endowment.For the economic growth,academic circles continuously modify it from its denotation and connotation ever since 1960 when Rostow firstly put forward this concept.But all the modifications simply set the goal of economic growth simply based on the thinking of economic growth mode,which is obviously flawed.Hence,how to interpret and solve a series of issues induced by the three aspects above must be an important topic for social and economic development of all nations in the future.For this reason,this article makes researches on the three interconnected aspects from the international level,national level and Shanxi level,and pays great attention to the relationship between financial development and industrial evolution in the economic growth.In this way,I hope to explore the new paths to resolve the problems produced under the new historical conditions,which is with great practical significance.This thesis analyzes the related issues with the integrated use of industrial theory,financial development theory and economic growth theory as well as by utilizing methods such as mathematical derivation,statistical description,measurement analysis and comparative analysis.Finally,the meaningful research conclusions are reached.The content and structure of the thesis is as follows:Chapter One is Introduction.Due to the international financial crisis,the global economic and financial rebalancing as well as the new round of industry evolution and financial transformation China launches constitute the research background of this thesis.Then,the part defines the concept of financial development,industrial evolution and economic growth.Next,the thesis introduces the logical arrangement,research methods and the main innovation points.Chapter Two is literature review.For a long time,financial development is connected with industry evolution only through economic growth.In this part,this paper conducts the combing,induction and analysis based on the correlation between the each two among financial development,the industrial development and economic growth home and abroad.Based on the review,the thesis puts forward the focus views and questions.Chapter Three is theoretical analysis.This chapter carries on the theoretical explanation for the intrinsic relationships between financial development and industrial evolution in the progress of economic growth.Then,the thesis finds that financial development can affect the industry evolution and economic growth through direct channel(capital accumulation)and indirect channel(technological progress).Then,through mathematical derivation,this paper analyzes the direct and indirect effect mechanism of financial development.Chapter Four is the practical analysis of financial development and industrial evolution in China.This part investigates the current situation of China's financial development and industrial changes.On this basis,this chapter also describes several typical facts of the unbalanced relationship among financial development,industrial evolution and economic growth.Then based on the special national conditions during China's transition period,this paper analyzes influence of the local government,a typical factor,to this fact,and verifies the effect through the measurement model.Chapter Five is the analysis on relationship among financial development,technological progress and industrial evolution.Theories have proved that financial development can indirectly affect industrial evolution through technical channels.At first,this part builds the equilibrium model for the three aspects above,which is going to show the influence of financial development and technological progress on industry evolution under equilibrium condition.Then,the paper empirically test the effect among China's financial development,technological progress and industrial development by selecting corresponding indicators.Chapter Six is the international experience about the financial development and industrial evolution.This part selects and compares the industrial structure change rules in economies like the United States,Japan,the European Union and Taiwan;summarizes the financial support mode of industry development and the internationalization experience on the industry development in the process of currency nationalization.Based on that,the thesis finally puts forward several suggestions for the financial development in the process of China's industry evolution and the new ideas to realize China's industrial evolution under the historical conditions.Chapter Seven is about the cases in Shanxi Province.Shanxi is the typical resourceful region and is the key area of economic transition and structural adjustment in China.This part focuses on the area particularity of the industrial development in Shanxi;analyzes the characteristics of the regional financial development;inspects the relationship between regional financial development and industrial evolution.Based on the principle of resources endowment and the principle of economic development differences,this thesis puts forward targeted suggestions for the financial development and industry evolution in resource-based regions.Chapter Eight is on the research conclusions,policy suggestions and the lacks of this paper.Based on combing research conclusions in this paper,this paper puts forward the policy suggestions on promoting economic growth in China from views like financial development,open economy and government actions and then states the lacks of the researches in this thesis.Synthesizing the researches in this paper,there are three main innovation points:Firstly,the paper constructs the equilibrium models:reflecting the level of financial development on the rate of conversion from saving to investment as well as reflecting technological progress differences on the total factor productivity in different industries;and reaches the influence of financial development,technical progress rate on the industrial structure change under the equilibrium condition.Secondly,through case analysis,this paper finds that regional financial development and industrial restructuring is with local characteristics and discordance with the development status on the national level.Therefore,I come up with the conclusion that regional development cannot simply model the system arrangement from the national level but needs to formulate financial and industrial development policies according to local conditions and with local characteristics.Thirdly,on the basis of grasping the historical process and the future trend of China's economic growth,the paper analyzes and verifies the dynamic evolution relationship among government actions,financial development and industrial development during the transition period by using the game theory,which provides theoretical reference and direction for dealing with the relationship among the three hereafter.At the same time,the thesis rethinks the thoughts on financial development and industrial restructuring under the framework of closed economic analysis in the process of economic growth and puts forward the new research perspectives that endowment of RMB internationalization affects industry innovation and structural adjustment.