An Empirical Study On China's Industrial Structure Transformation And Upgrading Under The Land Finance

This paper illustrates the transformation of China's industrial structure under the land finance.Structure transformation is one of the most crucial characteristics of China's economic growth.Being confronted with the manufacturing sector' excess production capacity,increasing labor costs,as well as the service sector accounting for a relatively low situation,the transform from “Two,Three,One” to “Three,Two,One” is becoming an increasingly important issue for Chinese government,in which the land finance is a very important part.During the government leading the industrial structure to transform,on one hand the government will promote the transformation and upgrading of the industrial structure based on the long-term sustainable economic development,on the other hand the government is immersed in the pursuit of short-term interests and maximize the interests of himself by increasing investment in the financial sector and real estate.So,on the whole economy,the land finance can make an appropriate and effective guidance to the transformation of the industrial structure is to be discussed.What's more,many problems has also be caused in the pursuit of short-term interests,such as excess production capacity,inefficient usage of fund,social and economic risks and so on.Does this mean that the government is too concerned about the short-term interests and ignores the long-term interests,leading to biased industrial structure?Besides,due to the differences in provinces,their different industrial structure cannot be ignored.In some areas,the development of industrialization is strong but the service is not,while some provinces' economic backwardness is in want of the support from industrialization.So,when there are obvious regional differences in the regions,what role will the land finance play is worthy to be discussed.In order to study the above questions,this paper uses some methods such as the combination of quantitative analysis and the qualitative analysis,fixed linear regression analysis and so on.Found that the government's land financial behavior has a long-term mechanism and short-term behavior incentives.The long-term mechanism is beneficial to the transformation of industrial structure;however,the short-term mechanism is not conducive to the transformation,but also to increase the social and economic risks.As a whole,the land finance can promote the transformation of industrial structure to service industry,but after removing the financial and real estate industry,it is found that the land finance is not conducive to the transformation of industrial structure.It can be seen that the impact of land finance on the industrial structure is reflected in the short effect mechanism mostly,that is,too much concentration in the financial sector and real estate,leading to the direction of the current industrial structure biased,too much of the virtual economy rather than the real economy.Being divided into different clusters,the results show that the second and the third clusters keep a strong dependence on land finance.Meanwhile the land finance has the most significant influence on the industrial structure.In conclusion,land finance can play a role in promoting the transformation of industrial structure,but the government too much emphasis on short-term interests rather than long-term interests,leading to the real estate industry and the financial sector too high,the economy has a tendency to take off the real economy.Land finance has promoted the China's rapid growth in recent 30 years,but the negative impact on the economy is also increasing.For now,whether the short-term incentive can be faced and corrected,and promote the transformation of the real economy in the direction of industrial restructuring,will become the key to decide whether China can maintain the rapid growth.