Research On The Effect Of Finance Structure On Industrial Structure

Finance is the core of modern economy, the process of industrial transformation cannot success without a lot of financial support and effective regulation of the financialsystem, both incremental adjustments and inventory adjustment. Capital allocation is thecore function of financial. Therefore, analysis of the impact of the financial structure of theindustrial structure adjustment from a capital allocation perspective has great significanceto the promotion of the industrial structure.Based on the capital allocation function of financial system, this paper analyzes theimpact of financial structure on the industrial structure from the perspective of totalfinancial structure. Specifically, this paper tests the relations among the total financialstructure, capital direct allocation mode of stock marker, capital indirect allocation mode ofbank credit market and insurance market with the industrial structure in Beijing. The resultshows: There is a long-term co-integration between FIR and the first, the second and thethird industry, The growth of financial aggregates can promote the adjustment of industrialstructure in Beijing by increase the ratio of the third industry; There is a long-termco-integration between the funds allocation in banking market and the third industry;There is no co-integration between insurance market and industrial structure; While thereis a long-term co-integration between the funds allocation in stock market and the secondand the third industry. Based on the results of the empirical analysis, this paper comes upwith some policy recommendations to actively promote the development of the financialindustry, to strengthen the capital allocation function of the bank credit market andsecurities markets.