Financial Development To Promote The Upgrading Of Industrial Structure

For the study that whether the financial development has a role in promoting the upgrading of industrial structure in our country or not,first of all, using the co-integration theory, the granger causality test, VAR model,impulse response function analysis method, this paper discusses the mutual relationship between financial development and industrial structure upgrade in our country from 1978 to 2014; Secondly, according to the division of eastern, central and western regions in our country, baseing on 2007-2013 panel data from 271 cities in China and the domestic economic development environment, the perspective of the global economic crisis, the financial development is divided into financial efficiency and financial scale, and it uses the static panels fixed effects and dynamic panel system GMM model,to get the empirical analysis of the impact of financial development on industrial structure upgrade effect. Finally, on the basis of the conclusion,it puts forward relevant policy Suggestions.The research results show that:(1)From 1978 to 2014 in China, the financial efficiency and financial ratio are related to the adjustment of industrial structure,with the long-term negative cointegration relationship;there is a two-way causal relationship between financial efficiency and industrial structure upgrade, but the financial related ratio has no significant causal relationship with industrial structure upgrade, which shows the improvement of financial efficiency can promote the development of the tertiary industry.(2)City panel model results also conclud that the improvement of financial efficiency is conducive to further promote the industrial structure upgrading, and it has no regional differences.The expansion of financial stocks exists regional differentiation to the industrial structure upgrading effect, eastern and western regions have positive effect, while the negative effect in the central region.(3)When there is an economic crisis, the adjustment effect of the reduction of foreign direct investment and the increase of domestic basic investment to upgrade the industrial structure is affected by the crisis time point,and the influence of the subprime mortgage crisis and the debt crisis are different.Dynamic regression shows that there is a self-reinforcing effect and certain hysteresis in the upgrading of industrial structure.