An Empirical Analysis Of The Impact Of Finance On The Manufacturing Industry

After the financial crisis of the early twenty-first Century,the major economies in the world have realized that the real economy is the basis for the survival and development of human society.As a newly industrialized country,China should pay more attention to the development of the real economy.The vigorous development of the real economy provides a material basis for the stability of our society and the smooth development of the economy.It is the foundation of our economy in the world,and is of great significance to the development of our economy and the progress of the society.As the core of modern economy,finance is bound to have a profound impact on the real economy.After the financial crisis,China's financial industry began to see high profits,and profits gradually surpassed many traditional industries.Correspondingly,China's real economy related enterprises have begun to gradually reduce profits,and some economically developed provinces and cities have seen the trend of industrial hollowing out.Whether the rapid development of the financial industry has occupied the profit of the real economy has aroused wide discussion in the social and economic fields.In view of the above problems,this paper,based on the provincial panel data of 15 years between 2002-2016 years,amends the Cobb-Douglas production function,and increases the two elements of financial development and the level of opening to the outside world.Through the establishment of statistical model,after controlling the factors such as labor,capital and opening to the outside world,this paper empirically examines the impact of financial development on the real economy.(1)the development of China's real economy is closely related to the financial industry,and the real economy and financial development of our country are steadily increasing,but with the development of the financial industry the real economy has a great effect on the real economy.Significant negative impact,from the empirical point of view verifies the proposition that "the development of the financial industry hinders the development of the real economy".(2)the dynamic panel data model is found through the use of the subregional difference GMM method to find the difference in the impact of financial development on the real economy in the eastern,central and western regions of China.The hindrance function of the Ministry is the smallest and the biggest obstacle to the development of the eastern region's real economy.In view of the conclusions and problems found in the study,this paper puts forward corresponding strategies and suggestions.First,the policy oriented financial support system should be improved.Second,enhance the innovation ability of the real economy industry and implement the innovation driven development strategy.Third,promote the common development of the real economy and the financial sector.Fourth,the central and western regions should establish an inland open economy and promote balanced regional development.