An Empirical Study On The Transformation And Upgrading Of Regional Economy By Multi-dimensional Financial Structure

Empirical studies on the relationship between financial structure and economic growth often focus on whether the financial structure will affect a country's economic growth rate,but little attention to the impact of financial structure on economic restructuring and upgrading.At present,China is in the critical period of economic growth shift,structural adjustment and pre-stimulus digestion period,the traditional mode of high investment and export-driven economic growth is unsustainable,so the economic transformation and upgrading is urgent.In this context,this paper focuses on the relationship between the financial structure and the economic transformation and upgrading,using the provincial panel data to study what kind of financial structure will help to promote economic transformation and upgrading.In the part of theoretical analysis,this paper starts from the financial function,risk management function and information asymmetry function of the financial system,and analyzes financial structure with different financial models,financial structures with different risk preferences and financial structure with different property rights.The results show that the proportion of the securities in the financial structure based on the traditional classification is helpful to promote the transformation and upgrading of the economy;The development of new finance such as venture capital and private equity funds(accounting for the financial sector)help to promote economic transformation and upgrading;the proportion of private capital in the banking system also help to promote economic transformation and upgrading.On the basis of theoretical analysis,this paper testifies the impact of financial structure on regional economic transformation and upgrading.The first is to build a comprehensive index of regional economic transformation and upgrading.In this paper,11 indicators are selected from the aspects of technological innovation capability,industrial structure,energy saving and emission reduction,and the weight of each index is determined by principal component analysis.The comprehensive index of regional economic transformation and upgrading is further synthesized.And combined with the provincial economic development tested the rationality of the index.Then,the comprehensive index is used as the explained variable,the regional financial structure as the explanatory variable,and other variables that may affect the economic transformation and upgrading as the control variables.A dynamic panel model is built to analyze the impact of the financial structure on regional economic transformation and upgrading.In this paper,the paper uses the generalized GMM method to estimate the above model.The results show that:(1)In the financial structure based on the traditional classification,the higher proportion of the banking sector is helpful to promote the regional development of the regional economic transformation and upgrading,and the proportion of the securities is not conducive to regional economic transformation and upgrading,this result is inconsistent with the theoretical expectations,which may be the system of securities market is imperfect.Incomplete development of market cannot really play its proper function.(2)The ratio of the emerging financial industry represented by venture capital to the traditional financial industry will help to promote the transformation and upgrading of the regional economy,which is in line with the theoretical expectation.(3)The increase of banking competition and the increase of the proportion of private capital in the structure of the bank's property rights are all conducive to the promotion of economic transformation and upgrading.This result is consistent with the theoretical expectation.The contributions and innovations of this paper are as follows:(1)The existing literatures mainly focus on the relationship between financial structure and economic growth rate,and few studies on the impact of financial structure on economic transformation and upgrading.(2)The existing literatures pay little attention to the impact of the new financial development and the structure of the property rights of banks on the transformation and upgrading of the regional economy,this paper makes a useful exploration in this regard,to fill the gaps in this study.