Empirical Research On Financial Development And Industry Structure Change Of China

Finance is core of modern economy. Financial development level of one country or district will make important influence to transformation of its entity economy structure. Domestic scholars and foreign scholars are concentrating in relation between financial development and economy increasing, but there is little research harvest in relation between financial development and industry structure. This paper is mainly to study influence of finance development to industry structure and to probe into critical element between industry structure improvement and entity economy structure conversion.This paper is generally divided into three parts. The first part is to review actuality of fiance development of china. This part analyzes financial development level across-the board in finance development scale and finance development structure and finance development efficency and finance development openning. Considering limitation of single index for weighing finance development, this paper adopts double index and put related index of stock maket into consideration, which will improve impersonality and enhance stringency. The second part is to put into empirical analysis between finance development and industry structure. In this part, it mainly adopts Granger test and Cointegration test and regression analysis methods to check mutual relation between finance development and industry structure and review influence degree from finance development to industry structure. This paper verifies influence from financial scale, financial efficiency, financial structure, financial opening and set regression tests. The third part is about policy suggestions. In the basis of above analysis, this paper points out four related policy suggestions how to improve finance development.By analysis, we can make conclusion that finance development is mainly centralizing increase in scale and quantity, but there is a large gap in financial development between our country and developed countries. This paper has made three important conclusions, as follows. The first can be generalized that finance development scale will cause larger influence to industry structure change but smaller influence to industry structure upgrade in the short time. Finance development efficiency will cause larger influence to industry structure than finance development scale in the long run. The second is that there is existing long equilibrium between finance development efficiency and industry structure. There only exists single causation, which means that finance development efficiency can granger cause industry structure. The third is that there is no obvious causation between finance development including scale and financing structure and efficiency. This shows that industry structure upgrade is not obvious and change in industry structure is mainly caused by increasing of the third industry.According to actuality and problem of finance development, this paper brings forward policy suggestions in how to enhance finance development level and accelerate finance progressing. In this part, this paper can be divided into four aspects, as follows. The first is to boost whole competition of finance. The second is to make progress in finance innovation and boost up finance market. The third is to quicken steps forward foreign opening. The fourth is to set up mechanism of finance supervision.