The Convergence Of Finance And Manufacturing: An Analysis Based On Industry Performance

With large-scale application of information technology, industry convergence isappearance, as a new economic phenomenon. Industry Convergence is a dynamicprocess of development, from the industrial connotation and extension of thedefinition of convergence can be seen, industry boundary will melting and Industrialconvergence will generate a new industry. Nowadays China is devote her to industrialtransformation and upgrading，so the improvement of manufacturing performance isthe most critical problem for our country the breakthrough of the "middle-incometrap".We uses the combination of normative analysis and empirical analysis, verticalanalysis and dynamic analysis method, studies the Chinese financial industry and theconvergence of manufacturing and its effect on the performance in the manufacturingindustry.Through studying the type of industrial convergence, motivation, and theway of evolution, especially, we constructed a mathematical model that explainsindustry convergence. So we analysis the industry convergence can reducing the costeffect, competition and cooperation effect, upgrading of an industrial structure，so itwill improve the performance of relevant industries. Then we use the industrialconvergence theory analysis the financial industry and manufacturing convergence atthe normative analysis.This paper empirically analysis the financial industry and the integration ofmanufacturing and manufacturing performance relationship at the panel data ofChina’s manufacturing industry. And we find:(1)the convergence of financial industryand manufacturing is related and most of the manufacturing industry positivelyrelated to the performance of manufacturing industry.(2)the convergence of financialindustry and manufacturing can significantly improve the performance of manufacturing;(3)we can preferably improve the utilization of FDI in our country, theFDI can crowd out effect of industry convergence improvement performance ofmanufacturing.(4)Then we carried out the robustness test by means of groupingvariable again. Then we find the result is still stable. So the empirical analysis canprove the theory.Based on the conclusions, we find the policy implications of China’s industrialtransformation and upgrading path from the perspective of industrial convergence.