The Influence Of Financial Development On The Adjustment Of Industrial Structure

With the transition of our economic growth pattern and the implementation of the supply-side reform,the reasonable adjustment of the industrial structure has been the focus of the current economic reform,coming to the main approach for the sound and stable growth of economy in China.However,the domestic industrial structure quality is still low,calling for the further improvement.The development of industrial structure is indispensable of the support by finance.The study indicates a relatively strong correlation between the financial development and industrial structure adjustment.Hence,the study on the influence of the financial development on the industrial structure adjustment is of great significance to the promotion of our industrial structure in a more efficient manner.Based on the literature study,this paper combs the major functional system of the financial development influencing the industrial structure adjustment,and builds its functional path.Through the construction of a relatively scientific and effective indicator evaluation system,the quality of the industrial structure adjustment is measured from the development goal of rationalization and supererogation,and the comprehensive assessment is made to the adjustment quality of domestic financial system development and the industrial structure.At last,relevant data from 1992-2016 is employed to build a relatively reasonable structural equation model to explore the influence of the three dimensions of the financial development on the quality of the industrial structure adjustment.The study showcases that the comprehensive indicator measure system is relatively reasonable and can reflect our financial development and the real situation of the industrial structure adjustment.It is found that the financial development and the industrial structure adjustment is not smooth in China,with unreasonable financial fundraising structure and the slow industrial upgrading needing to be solved.Also,financial development do have influence on the industrial structure adjustment.The scale,structure and efficiency of the finance development have an obvious influence on the rationalization and supererogation of industrial structure,yet having relatively big diffidence in the extension.Financial scale lays positive influence on the rationalization and supererogation of the industrial structure to a larger extent;financial structure poses positive influence on the rationalization of the industrial structure with limited influence on supererogation;financial efficiency has positive influence on the rationalization of the industrial structure with limited influence on supererogation.Therefore,the paper puts forward some suggestion on the advancement of our industrial structure adjustment from the aspect of the enhancement of the financial development,such as improving the structural imbalance of the financial development,promoting the development and the perfection of our capital market,strengthening he development of venture capital and forming a perfect risk prevention system.We should also cut the interfere to the credit by the government,improve the efficiency and the degree of the fundraising of the bank,advance the sound development of small and medium commercial bank,and increase the support for the non-government small and medium company,and solve the difficulty in fundraising,so as to promote the optimization and the upgrading of the industrial structure.