Influence Of Financial Capital Activity On Industrial Structure Upgrade In China

After China's reform and opening up,it has undergone several profound changes in its industrial structure and its economy has made great strides.In the course of China's economic development,financial capital and upgrading of its industrial structure has been the top priority of economic development.At present,it is the key to the construction of“four modernizations and two types”and is also the only way to achieve a sound and rapid development of China's economy and enhance its competitiveness.This paper firstly reviews and concludes the relevant literatures and research results on the relationship between the activity level of financial capital and the upgrading of industrial structure at home and abroad.Based on this,it analyzes the interaction mechanism between the activity level of financial capital and the upgrading of industrial structure.On the other hand,the upgrading of industrial structure will inevitably lead to changes in the financial structure,improve the financing system and promote the active financial capital.The upgrading of industrial technologies will promote the emergence of new financial institutions such as industrial investment funds,promote the emergence of financial innovations,and improve the ability of financial management to further promote the activity of financial capital.Then,this article reviews the development and current situation of the activity and the upgrading of the industrial structure of China's financial capital from 1998 to2016.From the total amount of financial capital and the status quo of financial capital circulation efficiency,this paper analyzes the current situation of the active degree of China's financial capital and points out some problems in the active degree of China's financial capital.Taking the output value of the three major industries as an indicator,the author analyzes the course of the upgrading of China's industrial structure and finds that despite the ever-increasing level of China's industrial structure,there are still some problems such as the low level of industrialization of agriculture,the low technological content of industrial structure and the lagging development of emerging service industries.Then,the author collated and collected relevant data from 1998 to 2016 in China,adopted the industrial structure optimization rate as a measure of the upgrading of the industrial structure,and used the financial correlation rate and loan-to-deposit ratio as indicators for measuring the activity of financial capital,establish the corresponding econometric model and make an empirical analysis of the relationship between the activity of China's financial capital and the upgrading of industrial structure.The results show that there are long-term and stable relations between financial-related ratio,financial development efficiency and industrial structure optimization rate.China's financial capital plays an important role in promoting the upgrading of industrial structure and has a different positive effect on the output value of tertiary industries,the growth of China's financial scale and the improvement of financial efficiency are conducive to promoting the optimization and upgrading of industrial structure.And the optimization and upgrading of industrial structure has impact on the growth of financial scale and the improvement of financial efficiency.Finally,on the basis of the existing problems and the results of empirical analysis,combined with the actual situation in China,specific relevant policy recommendations are put forward.