The Research On The Coordinated Upgrading Of Industrial Structure And Financial Structure

The upgrading of industrial structure and financial structure has always been the focus of academic research. However, academic research of this issue is mainly from the perspective of the influence of finance on industrial upgrading and economic growth, and the relationship between industrial structure upgrading and financial structure upgrading are rarely discussed. The purpose of this paper is to study the coordinated upgrading relationship between industrial structure and financial structure from the perspective of financial repression. The upgrading of industrial structure offers the basis for the upgrading of financial structure, and requires innovative and large-scale financial services, so as to promote the upgrading of financial structure. While, the upgrading of financial structure provides more financing channels and reduces the risk of finance, promoting further upgrading of industrial structure. For the both to achieve coordinated upgrading, financial repression is the key element.Through constructing mathematical analysis model, the paper finds that in different levels of financial repression, the relationship between industrial structure upgrading and financial structure upgrading induced by demand upgrading and technical progress is different. When the financial repression reaches a certain level above, it will deter the capital movement between the traditional economic sector and emerging economic sector, resulting in the coordinated upgrading relationship between industrial structure upgrading and financial structure upgrading is not exist, and negative effects on economic growth and financial development. With the relaxation of financial repression, there is significant coordinated upgrading relationship between industrial structure and financial structure, and the relaxation of financial repression has positive role on the economic growth and financial development.This paper applied the economic and financial data of China from 1978 to 2010, and use principal component analysis constructed financial repression index. With this index, the paper constructed the empirical analysis model. The result shows that there is negative correlation among financial repression, industrial structure upgrading, and financial structure upgrading. And it exist significant correlation among the upgrading of industrial structure and financial structure, economic growth, and financial development. Finally, the paper put forward some policy suggestions on how to realize the coordinated upgrading of industrial structure and financial structure in China, from the perspective of technical progress, demand upgrading, and financial deepening.