Empirical Study On The Relationship Between Financial Development And Industrial Structure Upgrading In Chong Qing

Since the reform and opening-up,economy of China is rapidly developping,and has made remarkable achievements.At present,China's economy has the second largest in the world,great changes have taken place in people's life.However,the disadvantages of high speed development have been increasingly emerging,the extensive development mode of “high input,high consumption,high emission” is unsustainable and imbalance of industrial structure is outstanding,those become the key factor of restricting the economic development in China.So the "steady growth,structural adjustment,promote the reform,livelihood" become the theme of economic development.Since chongqing crown,after less than 20 years,per capita GDP of chongqing from 5253 yuan in 1997 to52321 yuan in 2015,a rapid development.However,the level of industrial structureis low and structural imbalance problem is prominent.Many studies have shown that financial development is one of the important factors affecting the upgrading of industrial structure.At present,Chongqing put the financial development in the important position,the added value of the city's financial sector strive to account for the proportion of GDP of more than 10% by 2020.But the relationship between financial development and upgrading of industrial structure of chongqing,This article summarizes the concepts and related theories of financial development and industrial structure.On the basis,we specifically expounds the mechanism between financial development and industrial structure upgrading.Combined with the status quo of chongqing,and through comparing with Beijing,Shanghai,Tianjin and the national,we found that financial development and the condition of industrial structure are slightly later in chongqing.We urgently need to accelerate the development of financial industry,upgrade the industrial structure,improve the quality of development.In order to clarify the specific relationship between financial development and upgrading of industrial structure,we select the time series data of financial development scale,structure,efficiency and upgrading of industrial structure from 1997 to 2015,successively set up linear regression model,VAR model and VEC model.Linear regression model shows that the current only financial development scale promote the upgrading of industrial structure.To avoid the influence of complex relationships that may exist between variables in the model,we carry on dynamic econometric analysis based on VAR model: 1)according to the results of Johansen cointegration test,there is long-term stable relationship between the industrial structure upgrading index LISR and three financial development index,and the impact of the variables in the short term,VEC model will restore the whole system to long-term equilibrium condition by the error correction term VECM modification at a certain speed;2)Further analysis based on VAR model,Granger test results show that the structure of financial development(LFSR),efficiency(LFER)is Granger cause of industrial structure upgrading(LISR),the upgrading of industrial structure(LISR)is Granger cause of financial development scale(LFIR)expanding;3)The impulse response analysis dynamic process between the industrial structure and financial development,variance decomposition examined the contribution financial development of the industrial structure upgrade LISR,found the industrial structure accounted for about 69%,financial development contribution accounts for about 31% of upgrading of industrial structure,financial development scale,structure,efficiency,respectively accounted for about 6.5%,12%,12.5%.Change of industrial structure has larger impact on financial development,the contribution to financial development scale accounts for about 58%,the contribution to financial development structure accounts for about 37%,the contribution to financial development structure accounts for about 22%.In addition,in order to a clearer investigate industry structure adjustment impact on the development of the financial,we construct the evaluation index system and use the factor analysis method to evaluate the financial development level of chongqing from 1997 to 2015,the unary regression model was established based on the evaluation results.Regression analysis results show thatthe industrial structure changes 1 unit,the level of financial development change7.0182 units in same direction in 1997-2015,illustrating the upgrading of industrial structure can improve the level of financial development.Finally,we put forward the overall train of thought to promote the financial development and upgrading of the industrial structure,that is,to develop the modern service industry and strategic emerging industries,promoting financial scale expansion,on this basis,optimizzing the structure of financial development,improving financial efficiency and better serve the economic development,guiding the optimization and upgrading of industrial structure to form a benign circulation system,promoting social and economic sustainable and healthy development in an all-round way.