The Research On The Effects Of China’s Financial Innovation On The Optimization And Rationalization Of Industrial Structure

Since the reform and opening up, the financial industry continue to drive China’s economic growth and the optimization of industrial structure. Optimization and Rationalization of industrial structure means optimizing social resources, financial markets are the backbone of the optimal allocation of resources, and financial innovation is the core of the financial markets, thus promoting financial innovation is an important part of the optimization and rationalization of industrial structure.There are many factors which affecting the optimization and rationalization of industrial structure, In reading a lot of literature on the basis of this paper, choosing financial innovation as a starting point to make a research of its specific impact on the optimization and rationalization of industrial structure. First, the article based on the theory of financial innovation, economic theory that financial innovation through technological innovation, industrial integration and development of new industries to promote the sophistication of industrial structure, as well as coordinating industrial relations and industrial structure to promote the rationalization of industrial structure.By forming the changes of demand structure,supply structure and industrial capital structure to analyzes the support model of financial innovation, and on the basis to choose the specific path for China’s financial innovation promoting the rationalization and sophistication of industrial structure. Secondly, making a research of the status of the financial product innovation, institutional innovation and regulatory innovation, as well as the status of sophistication and rationalization of Industrial Structure, On this basis, selecting the data of the years of 1990-2013 in our country, to build a vector autoregression model, and analyze the impact of financial innovation on industry structure, carrying out stationary test, co-integration analysis, error correction, and granger causality, The empirical results show that: There are long-term and short-term stable relationships between the indicators of financial innovation and the indicators of industrial structure,the financial depth and financial structure changes which caused by financial innovation and financial innovation significantly affect the sophistication and rationalization of industrial structure, financial innovation promote the sophistication of the industrial structure, but having a negative effect on the rationalization of the industrial structure. Finally, according to the results of econometric analysis and our country’s current situation, Put forward suggestions of financial innovation to promote the optimization and rationalization of industrial structure, Including: Accelerating the innovation of financial products to enrich our financial markets; Continuing to promote financial regulation and innovation to create a favorable external environment; Speeding up financial organizational innovation to promote the improvement of financial infrastructure; Enhancing the institutional innovation to strengthen the ability of financial innovation; Increasing the proportion of foreign financial investment to accelerate the development of financial deepening,Thus to promote the optimization and rationalization of industrial structure.