The Reaserch About Influence Of CPI On Economy Of Financial Industry Development In China Basing On Input-output Method

In recent years, the increasing tendency of economic globalization becomes moreand more obvious, especially after the U.S. subprime mortgage crisis sweeping theglobe world in2007, the world’s real economy was severely affected in manycountries, so the financial sector plays an increasingly important role in nationaleconomic development, the level of financial sector development also becomes a animportant symbol of a country’s of economic development level.The sweeping of the subprime mortgage crisis throughout the globe world leadsto an overall decline in the global economy; countries around the world are seekingfor new development and implementation of changes in the way of economicdevelopment. During the "Twelfth Five-Year Plan", China regards "transfer mode,adjust structure" as the main road of economic development, and stresses that "toaccelerate the formation of consumption, investment and exports growth situation inthe economy", it puts consumption at prime location on economic growth momentum.Then as a consumer consumption price index in economic market, CPI reflectschanges in the prices of production of various commodities sectors. Then as theinterdependence between the various industrial sectors, the changes of CPI willdefinitely affect the financial industry.In this paper, we use China2010input-output tables data, combined with theinput-output method and the general equilibrium model to study the impact of CPI ondevelopment of China’s financial industry, and draw the following conclusions:（1）The margin of CPI increase and increase of financial value added and totaloutput have positive correlation relationship, CPI rise will cause the increase of addedvalue and the total output of the financial sector;（2）CPI increases have affected the input of financial sector to other sectors,where the greatest impact of eight industrial sectors are the secondary sector:Electronic Component Manufacturing, instrumentation, manufacturing, ferrous metalmining industry, oil and gas extraction industry, non-ferrous metal mining industry,basic chemical raw materials, synthetic materials manufacturing, special chemicalproducts manufacturing;（3）The rise of CPI,46%of the increase of all intermediate inputs in thefinancial sector goes to low-carbon industries, and54%goes to non-low carbonindustries according to the CPI rise;（4）The margin of CPI increase and increase of total output of non-low carbonand low carbon industry have positive correlation relationship, CPI rise will cause theincrease of total output of non-low carbon and low carbon industry; and CPI rise has a bigger impact on non-carbon industry than low carbon industry.