Research On Financial Support In The Supply-Side Structural Reform

China's economy has been turning to a medium-and high-speed growth stage from the high-speed growth mode in recent years,and faces with the"New Normal"tasks of economic structure adjustment and new and old kinetic energy conversion.The role of the troika,i.e.consumption,investment and export,that emphasizes the demand side in promoting economic growth has been weakening and the problem of structural supply-demand misallocation is also emerging.Against such background,the central government proposed a new economic initiative,named the "supply-side structural reform",trying to improve supply efficiency and quality,promote structural adjustment,strengthen the adaptability and flexibility of the supply side with changes in the demand side,and relieve the current problem of imbalanced economic structure from the perspective of the supply side,such as labor,land,capital,technology and institutions.The main tasks of the current supply-side reform are addressing overcapacity,reducing inventory,deleveraging,lowering costs,and bolstering areas of weakness.The main objective is to promote steady growth,continued reform,structural adjustments,higher living standards,and forestall economic risks.As the core of modern economy,finance is the main path of deepening the supply-side structural reform and is a main step to solve the problem of insufficient and imbalanced economic growth that was proposed in the 19th Communist Party of China National Congress.Finance initially aims to serve the real economy and is complementary to the real economy.Finance plays an important role in accomplishing the tasks of promoting steady growth,continued reform,structural adjustments,higher living standards,and forestall economic risks and of addressing overcapacity,reducing inventory,deleveraging,lowering costs,and bolstering areas of weakness.The size,efficiency,structure of the financing industry,the composition of the financial market and the orientation of financial support all affect capital allocation efficiency,capital flows efficiency,capital pricing mechanism and the direction of capital flows,which further influence the efficiency of the supply-side structural reform.With financial structure as the entry point and financial support in the supply-side structural reform as the main research objective,using stratified research as the main approach and panel data analysis as the main tool,this dissertation mainly focuses on solving problems including what kind of role finance should play,how to play the role and how to adjust own structure in the reform by combing quantitative and qualitative analysis,combing theories and practices,and combing macro,medium and micro perspectives.This dissertation aims to find the focus of how finance supports the supply-side structural reform and further to bring forward specific policy implications.This dissertation is organized as follows.Chapter I introduces research background and necessity.Chapter 2 is literature review,specifically along the two main lines of financial structure reform and economic structure reform.Chapter 3 discusses the three divisions of finance,i.e.macro,medium and micro levels and chapter 4 discusses the division of the economic structure reform into factors of technology,capital,labor and institutional optimization.Using dynamic panel analysis approach,chapter 5 focuses on solving the problems of promoting steady growth and adjusting economic structure through analyzing financial macro structure that corresponds to the overall economic structure.By employing static panel and dynamic panel approaches,chapter 6 utilizes the PVAR model to solve the problems of addressing overcapacity,reducing inventory,and bolstering areas of weakness through analyzing financial supply structure that corresponds to technology innovation and institution optimization,chapter 7 discusses how to solve the problems of deleveraging and lowering costs through analyzing financial market structure that corresponds to optimizing resource allocation efficiency.Finally,chapter 8 draws conclusions from the perspective of financial structure and proposes suggestions for the financial support of the supply-side structural reform.The main findings of this dissertation are as follows.First,from the macro perspective,finance should be back to the origin,strengthen the function of resource allocation,moderately relax financial regulations and form a virtuous circle mechanism with the economy.In the meantime,we should virtually promote economic growth and boost industrial structure adjustment through precise industrial policies,smooth capital conduction mechanism,and firm steps of deepening reform.Second,from the medium perspective,finance should clarify "three directions".That is,firstly,rationally treat "addressing overcapacity"and make the best use of the advantage of financial institutions in areas of information and financing.Secondly,steadily promote"reducing inventory",change the real estate financial adjustment strategy from;"staring housing prices,staring overall volume"to "staring demand and supply,staring structure"and thirdly precisely support"bolstering areas of weakness",specifically the weakness of technology innovation,agriculture development and the development of small firms.Third,from the micro perspective,finance should construct "two many".That is,firstly,develop direct financing,build"multiple-level"capital market,promote the economy to deleverage and secondly enrich"multiple-supply"financial market and lower costs efficiently according to the comparative advantage theory.Fourth,based on the different contents of the financial structure,verifying from the macro,medium and micro perspectives,we must clarify the direction of financial reform in order to support supply-side structural reforms,return to the origin of the economy,enhance the efficiency of financial services,and enrich the financial supply system to jointly promote The structural reforms on the supply side have made progress,which is also the direction of future research.