Empirical Study Of The Financial Development Impact On Manufacturing Upgrading In Jiaxing City

With the change of China's economic development environment and the global manufacturing industry development,China's manufacturing industry ushered in a rare strategic opportunity,and financial development will inevitably have an impact on the development of manufacturing.Under the macro-background of focusing on the level of financial development and the quality of economic development and accelerating the manufacturing upgrading,financial development will have what kind of impact on the manufacturing upgrading in Jiaxing City.Based on this,this paper will study how financial development affects its manufacturing upgrading in Jiaxing City.This paper summarizes financial development,industrial upgrading,manufacturing development and other relevant domestic and foreign literature in order to lay the foundation for this study.First of all,the paper theoretically analyzes that financial development have what kind of impact on the manufacturing upgrading.This analysis include: the definition of manufacturing upgrading,the relationship between financial development and manufacturing upgrading deduced from the model,the process of impact,two ways of impact including indirect financing and direct financing and mechanisms of impact.Then,the paper analyzes the development of finance and manufacturing industry in Jiaxing City.Analysis shows that the financial scale is expanding constantly and the financial efficiency is developing steadily in Jiaxing City.In this paper,the manufacturing industry is divided into labor-intensive manufacturing and capital-and technology-intensive manufacturing industry,the proportion of labor-intensive manufacturing output value on total output value of manufacturing industry is declining and the proportion of capital-and technology-intensive manufacturing output value on total output value of manufacturing industry is rising,which shows that manufacturing is upgrading in Jiaxing City.In addition,the paper makes an empirical analysis of the impact using Jiaxing 's relevant statistical data.Empirical analysis shows that the development of financial scale and financial efficiency can have a positive impact on the manufacturing upgrading in the long term,and the impact of the development of financial scale is greater than that of development of financial efficiency.In the short term,the expansion of the financial scale is the Granger reason for the manufacturing upgrading,but the development of the financial efficiency is not the Grangerreason for the manufacturing upgrading.Finally,this paper puts forward some suggestions according to the relevant theoretical analysis and empirical results.