Study On Effect Of Financial Structure On Economic Growth Quality

At present,China’s economy is in the stage of transition from high-speed growth to high-quality development,and the main social contradiction has been transformed into the contradiction between the people’s increasing needs for a better life and unbalanced and inadequate development,there is an urgent need to improve and optimize the economic structure and enhance the quality of economic growth.The finance in the modern economy is very important,plays a leading role in optimizing the allocation of resources.In particular,the adaptation of the financial system is particularly important at a critical time when the real economy is moving towards high-quality development.In recent years,the CPC Central Committee and the State Council have successively issued a number of top-level designs,such as the opinions on constructing a more perfect factor market-oriented allocation mechanism and the opinions on speeding up the perfection of the Socialist market economy system in the new era,the People’s Bank of China,the China Banking Insurance Regulatory Commission and other financial regulatory authorities have successively formulated the guiding opinions on further strengthening the financial services of msmes,the guiding opinions on promoting the high-quality development of the banking and insurance sectors,and other supporting implementation opinions,we have made it clear that we should adhere to the new concept of development,optimize the financial structure,improve the financial system,and form a multi-level,wide coverage and different financial system.In the process of economic development and financial reform in China,the problem of quality and structure has long been focused on the goal of speed catching up and scale expansion.In 2019,the scale of social financing in China reached 25.58 trillion yuan,but the proportion of corporate bonds was only 12.67 percent,and that of domestic stock financing of non-financial enterprises was only 1.36 percent,but small and micro enterprises financing difficult,financing expensive problem is still unresolved.These phenomena have aroused the doubts about the efficiency of the real economy of financial service,especially the widespread concern about the contradiction of financial structure.Why,then,is the ability of our financial system to serve the real economy weak?Does financial development promote the corresponding real economy development?Does the financial structure match the economic structure in transition and upgrading?How should the financial structure be adjusted to improve the quality of economic growth?And so on,in the current transition stage of promoting high-quality economic development,these are the issues that need to be sorted out and studied in depth.In view of the theme of "financial structure and the quality of economic growth",various circles of society have conducted extensive research,but due to different research angles and different methods,the conclusions drawn are also different,some even contrary.This paper holds that the study of the relationship between financial structure and the quality of economic growth should not only be objectively defined and evaluated by scientific methods and detailed data,but more importantly,it should be based on a multi-dimensional,multi-angle,multi-level comprehensive analysis of their relationship.In view of this,this paper first analyzes the impact of financial structure on the quality of economic growth from the theoretical level,and from the current financial structure of China’s main contradiction cut-in,the financial structure of China’s regional changes in time and space characteristics of analysis;According to the background of high-quality development,this paper evaluates,measures and analyzes the quality of regional economic growth from the perspective of five development ideas.Then it adopts the system GMM estimation,the intermediary effect model,the threshold effect model,the spatial panel principal component model,this paper examines the relationship between financial structure and the quality of economic growth from the perspectives of total effect,intermediary effect,threshold effect and spatial spillover effect.Based on the above research ideas,the paper consists of 8 chapters,the main research contents of each chapter are as follows:Chapter 1:Introduction.It mainly includes the introduction of research background and Literature Review,summarizes the research ideas,research methods and main contents of this paper.Chapter two:The mechanism of financial structure’s influence on the quality of economic growth.It mainly includes the definition of financial structure and the quality of economic growth,the path analysis of financial structure affecting the quality of economic growth and the construction of theoretical model.Chapter Three:Analysis of the temporal and spatial characteristics of the development of my country’s financial structure.Taking the main contradictions in the current financial structure of our country as the starting point,we will objectively describe and evaluate the evolution of the financial structure in various regions of our country from the three dimensions of social financing structure,direct financing and indirect financing structure.The study found that from the perspective of time analysis,in the past 40 years of reform and opening up,China’s financial industry has developed rapidly,with rapid expansion in scale,and prominent structural contradictions.Social financing is overly dependent on bank credit,and the proportion of direct financing is too low,especially the long-term lag of the stock market;The structure of financing entities is unbalanced,competition on the supply side is not sufficient,and financial resources on the demand side have a nationalization bias;from a spatial perspective,the eastern region has concentrated nearly 60%of the country’s financial resources,financial institutions are densely distributed,and market financing is more developed.Regardless of direct financing or indirect financing,the proportion of state-owned enterprises is significantly lower than that of the central and western regions.However,the financial resources in the central and western regions are relatively scarce,the number of financial institutions is relatively small,the loan amount is limited,the financial market is underdeveloped,and the financial scale is small.Chapter Four:The measurement and evaluation of the quality of economic growth in various regions of China.To measure the quality of economic growth,not only should the evaluation method be scientific and rigorous,but also the construction of evaluation index system should be combined with the background of the Times.On the basis of previous literature research,this chapter firstly reconstructs the comprehensive evaluation index system of economic growth quality from the perspective of the five development concepts,combining with the background of high-quality development era,and the quality of economic growth in various regions of China has been measured.Secondly,the paper makes a comparative analysis of the spatial evolution characteristics of the economic growth quality,the regional differences,and the relationship between the economic growth quality and the economic growth rate.The results show that:First,the quality of China’s economic growth has been improving gradually in recent years,but the quality of economic growth fluctuates greatly,and the extensive growth pattern has not been fundamentally improved;Second,the quality of economic growth in each region showed obvious spatial characteristics during the sample period,and the areas with high quality of economic growth continued to cluster to the eastern coastal areas;Third,there are differences among regions in the importance they attach to the quality of economic growth and the speed of economic growth,with the eastern region paying more attention to the quality of economic growth,however,the contradiction between "high speed" and "low quality" of the Midwestern Sectional Figure Skating Championships economy still exists.Fourth,the impact of financial structure on the quality of regional economic growth may have certain stage characteristics,the financial structure of the Eastern Region is better than that of the central and western regions,and the quality of economic growth is better.Chapter Five:the Empirical Test of financial structure’s influence on the quality of economic growth.Firstly,this paper empirically tests the overall impact of financial structure on the quality of economic growth by constructing a system GMM model,and further tests the heterogeneity and stage characteristics between financial structure and the quality of economic growth in different regions.On this basis,we use the intermediary effect model to test the intermediary effect of financial structure on the quality of economic growth.Thus answer whether the financial structure has significant influence and intermediary effect on the quality of economic growth,which type of financial structure is more conducive to the improvement of the quality of economic growth and so on.It is found that the impact of financial structure on the quality of economic growth has the following distinct characteristics:First,from the analysis of total effect,the improvement of the ratio of direct financing and indirect financing has an obvious promoting effect on the quality of economic growth;The concentration of banking financial institutions and the proportion of state-owned enterprises in direct financing have significant inhibition on the quality of economic growth However,the increase of the proportion of state-owned enterprises in indirect financing has a positive effect on the quality of economic growth.Mainly because our country long-term indirect financing primarily,the stock market starts late,causes the indirect financing marginal effect aggregation to appear.At the same time,the influence of financial structure on the quality of economic growth has obvious regional heterogeneity because of the uneven distribution of financial resources in different regions.Second,from the analysis of intermediary effect,the ratio of direct financing to indirect financing,the concentration of banking financial institutions,and the proportion of state-owned enterprises in indirect financing all have positive effects on the quality of economic growth through technological innovation channels,however,the intermediary effect of direct financing on the proportion of state-owned enterprises is not significant.This paper believes that this is mainly due to the current imperfect development of the direct financing market,small-scale related.There are significant differences in the effects of financial structure variables on the quality of economic growth through the channel of savings rate:The concentration of banking financial institutions,the proportion of direct financing Chinese state-owned enterprises on the quality of economic growth through the channel of savings rate,the proportion of state-owned enterprises in indirect financing promotes the quality of economic growth through the channel of savings rate,but the intermediary effect of direct financing and indirect financing is not significant.The reason is that the development of direct financing not only provides a direct channel for the supply and demand of funds,but also increases the expected income of investors and diverts savings,and there is substitution relation,which leads to the uncertainty of influence.The increase of bank concentration has a restraining effect on the quality of economic growth through the channel of marginal capital productivity,mainly because the centralized bank structure has a comparative advantage in selecting capital demand,which leads to more profits,however,monopoly profit has a negative effect on the quality of economic growth,while marginal capital productivity and transformation rate of savings and investment channel intermediary effect of other financial structure variables are not significant.Chapter six:The test of the spatial effect of financial structure on the quality of economic growth.In view of the high mobility of financial resources and the significant spatial correlation between the quality of economic growth in various regions of China,this chapter adopts spatial panel principal component regression model to test the spatial spillover effect of financial structure on the quality of economic growth.It is found that the financial structure has a spatial spillover effect on the quality of economic growth,and the increase of the ratio of direct financing to indirect financing has a greater effect on the quality of economic growth On the contrary,the concentration degree of banking financial institutions has a certain promoting effect on the quality of economic growth.With regard to the latter,this paper believes that it is related to the current operating characteristics of financial institutions,the government’s coordination of financial resources and the liquidity of financial resources,and does not mean that higher concentration of banks is better,on the contrary,we should promote the standardized development of small and mediumsized banks and create an appropriate and orderly competitive environment;the increase in the proportion of state-owned enterprises in indirect financing and in the proportion of state-owned enterprises in direct financing has a restraining effect on the improvement of the quality of economic growth,this is related to the low efficiency of state-owned enterprises and the crowding out effect of state-owned enterprises on private enterprises.Chapter Seven:The threshold effect test of financial structure on the quality of economic growth.Found in the linear analysis above,the concentration of banking financial institutions and the proportion of direct financing by state-owned enterprises in the eastern region,the proportion of direct financing and indirect financing by state-owned enterprises in the central region,the concentration of banking financial institutions and the proportion of indirect financing by state-owned enterprises in the western region,and the proportion of direct financing by state-owned enterprises have no significant effect on the quality of economic growth,it shows that there may be some non-linear relationship between the financial structure variables and the quality of economic growth.Therefore,this chapter takes the financial structure as the threshold variable,constructs the panel threshold model,from the national level and the regional level separately examines the financial structure to the economic growth quality stage influence rule.The empirical test shows that the threshold effect of financial structure on the quality of economic growth exists,and the increase of the ratio of direct financing to indirect financing has a significant inverse "U" effect on the quality of economic growth,at present,the ratio of direct financing and indirect financing is only 17.3%,less than the first threshold of 47.80%,so the proportion of direct financing should be further increased The concentration degree of banking financial institutions has a "u-shaped" non-linear restraining effect on the quality of economic growth.Too High concentration degree of banking market will hinder the improvement of economic growth quality,but the concentration degree is too low and the market competition is excessive,the proportion of state-owned enterprises in indirect financing has a "u-shaped" non-linear restraining effect on the quality of economic growth,while the proportion of state-owned enterprises in indirect financing has a negative effect on the quality of economic growth,the increase of the proportion of state-owned enterprises in direct financing has a significant restraining effect on the quality of economic growth,so the proportion of state-owned enterprises in financing should be reduced.Chapter Eight:The main conclusions,policy enlightenment and lack of research.In this chapter,the conclusion of the whole paper is summarized,then the corresponding policy recommendations are put forward,and the future research direction is further prospected.The possible innovation points of this paper:First,expanded the existing research paradigm combining with the background of the Times.Based on the background of high-quality Economic Development,the traditional research paradigm of "financial scale and growth rate" is extended to the perspective of "financial structure and growth quality",we measure and analyze the financial structure and the quality of economic growth from different angles.Especially in the measurement of the quality of economic growth,the existing literature has not paid enough attention to the background of the Times,the selection criteria of indicators are different,in addition to the different methods of use,the different data sources,and the research results are not uniform,it’s hard to get a general acceptance.Based on the background of the new era and from the perspective of "Five Development Ideas",this paper reconstructs the evaluation index system of economic growth quality,and optimizes the measurement method to make the evaluation results more objective,more in line with the actual situation in various regions of our country.Second,the transmission mechanism of financial structure and economic growth quality is reorganized.The transmission mechanism of the interaction between the two is initially established,and the impact of financial structure on the quality of economic growth in different scenarios of government development goals is examined from a practical perspective,then we explore the overall effect,intermediary effect,spatial effect and threshold effect of financial structure on the quality of economic growth,and answer the question of how financial structure affects the quality of economic growth.Third,the effect of financial structure on the quality of economic growth is examined comprehensively.The first is the empirical test stage selection system GMM method,which solves the endogenous problems among variables and between variables and residuals,and then examines the overall effect of financial structure on the quality of economic growth;The second is to investigate the intermediary effect of financial structure on the quality of economic growth,and to explore the existence of four kinds of intermediary effects of financial structure on the quality of economic growth The third is to examine the spatial impact of financial structure on the quality of economic growth,and to improve the objectivity of the analysis results by building a spatial panel principal component model,this paper examines the threshold effect of financial structure on the quality of economic growth,and reveals the regularity of the stage effect of financial structure on the quality of economic growth.