Research On The Crowd-out Effect Of Economic Financialization On Chinese Industrial Investment

As a significant trend of the world economic development,financial and economic circles have attracted wide attention from the academic circles.Generally speaking,the developed countries in Europe and America have gone through the process of industrialization,de industrialization and economic finance.Economic finance is beneficial to the region to improve economic vitality and speed up the accumulation of wealth,but with the deepening of the economic and financial degree,the negative impact of economic and finance is becoming more and more obvious.The economic bubble and Industrial Hollowing make the seemingly "powerful" economy very "fragile".In recent years,China has accelerated its integration into the world economic system,and the market-oriented reform has been advancing continuously.The development of industrialization has reached an unprecedented height.However,with the continuous development of the financial market,China has also appeared to be a sign of industrialization,and the industrial profit rate and investment rate have shown a downward trend.It is reported that the investment rate of the financial industry has remained above 25% after 07 years.The contribution rate of the financial industry GDP and the increasing number of employment in the financial industry show that the position of Finance in the national economy has been increasing,and the economic and financial development has begun to permeate in China,and the most obvious is the impact on industrial investment.Academia has not reached a unified view of the relationship between finance and industrial investment.Some scholars believe that the improvement of the degree of finance is beneficial to widening the financing channels and reducing the cost of financing,and the improvement of the financial degree of the industrial sector is also beneficial to the industrial sector to improve its profitability and improve its financial situation.Another part of the scholars believe that the current financial development has deviated from the original intention of the service industry,and the finance began to separate from industry and industry,and to compete for investment resources in the field of investment and industry,and there is a competitive relationship between finance and industry.The finance of the industrial sector is not only harmful to the increase of the investment rate of industry and industry.It will squeeze out industrial investment and reduce industrial investment.In order to explore the relationship between economic finance and industrial investment,this paper studies the relationship between industrial investment rate and economic finance on the basis of capital stock demand model,modern capital structure theory,Tobin Q theory and enterprise investment cross term optimal decision theory.This paper uses the data of non financial firms in A shares listed companies to carry out an empirical analysis to verify that the deepening of the degree of economic finance produces "squeezing effect" or "reservoir effect",or the two are all.The following conclusions are obtained by using dynamic panel model regression analysis on related data: first,finance The degree of deepening has a significant crowding out effect on industrial investment rate.Although finance can also reduce corporate financing constraints by enhancing corporate profitability,the crowding out effect is dominated by a comprehensive view.Second,the reduction of financing constraints in non-financial enterprises has a significant positive impact on the short-term business investment,which is gradually reduced in the long term and is ultimately negative.Third.Considering the difference in the impact of economic and Finance on industrial investment under different market conditions,the market is divided into "bull market" and "bear market",and the empirical analysis of the market after subdivision finds that the "cistern" effect of economic finance is only in the "bull market".The period is not reflected in the bear market period,and the size of the reservoir effect is closely related to the distribution of financial gains by enterprises.In view of the conclusions of this paper,the following countermeasures and suggestions are put forward: firstly,China should guard against excessive finance and increase the rate of return on industrial investment;second,the allocation of reasonable assets of enterprises;third,speed up "deleveraging" and guide the entry into the service of the real economy.