Analysis Of Financial Development Promoting Dual Economic Transformation Motive Mechanism And Effect

As the world’s largest developing country, China also faces the coexistence oftraditional agriculture and modern departments dual economic structure. With China’srapid economic growth at the same time, the economic structure contradiction alsocontinuously outstanding, smooth transformation of dual economic structure is aboutour country’s stability, sustained economic growth. Finance as the core of moderneconomy, financial development inevitably has the influence to the transformation ofbinary. As a result, the system and in-depth study the dynamic mechanism of financialdevelopment promoting dual transformation, is not only beneficial to enrich theexisting economic theory, also provides the basis for reasonable financialdevelopment policies, however, the existing theory of financial development and dualeconomic theory to the transformation of dualistic financial development in theprocess of the few studies, even if the Fei-Rains dual economic model is involved infinancial markets, unfortunately, their research is largely based on the perspective of“material flow”. Worth mentioning is that, unlike traditional point of view, animportant conclusion of this article is that only from the perspective of the transitionof the dual rural net outflows to some extent help cross functional adjustment of theeconomic structure. Specific innovation points are as follows:At the theoretical level, this article first to the Fei-Rains financial developmentmodel of function has made the detailed elaboration, on this basis, the specificationput forward theoretical framework for the financial development promotes the dualtransformation, The inherent internal mechanism is: from the point of view of theinter-departmental flow of financial resources, promote the industrial sector capitalaccumulation of push-pull interactive mechanism constitute the binary transformationprocess of the endogenous financial development momentum, the process flow tooptimize the capital space configuration, contributing to the transformation of the dualsmoothly. Secondly, this article in to join the market after the more solid the constraintconditions of incomplete, respectively, puts forward “of standard walrasian in perfectmarket economy, financial development has a promoting effect on dual economytransformation” and “financial development on the transformation of the dual role will vary with the increase of economic marketization” two hypothesis.On empirical research, this article selects the can better reflect the real economicbasis of the dual economic structure and financial development variables, andconstruct the logical econometric model, is a proof of the hypothesis, this papermainly using VAR model to empirical analysis of1978-2011national data, JJ cointegration test and VEC model to estimate the results show that no matter fromlong-term or short-term fluctuations, agricultural capital outflows are significantlypromote the dual transformation, and the Granger test results show that the dualeconomic structure is not the cause of the agricultural capital outflows. Hypothesis2prove, GMM measurement method based on the dynamic difference in1997-2009provincial panel data to carry on the empirical analysis, the estimated results showthat financial development significantly promote the dual transformation.Based on the above conclusions, this article has extended the following fouraspects: policy Suggestions: one is that most of the existing financial developmentindex system corresponding to the number of economic development, therefore,binary transformation and financial restructuring economic development evaluationindex is important; The second is to build rural financial system and balance therelationship between the finance support agriculture and agricultural capital outflows,optimize the rational allocation of resources, realize the balanced development of thefinancial; Three is to perfect financial market system construction, improve theefficiency of financial development. Fourth, deepening the reform of market system,weakening financial development promoting dual transformation mechanism linkfriction.