The Research Of The Impact Of Financial Openness On The Industrial Structure Upgrading In China

Since the 1980s,with the deepening of the process of economic globalization,many countries have successively implemented financial openness policies.In the 1990s,this wave of financial openness broke into developing countries.The incremental capital brought about by financial openness and the advanced technologies have enabled the rapid development of economy and finance in developing countries.Financial openness has brought opportunities and risks.China has been steadfast and cautiously marching on the road of financial openness.Since the reform and opening up,China has never stopped in the journey of financial openness.Especially after China's accession to the WTO,China's financial openness has been accelerating.With the deepening of the Belt and Road Initiative,financial opening has opened up new opportunities for China.In 2018,General Secretary Xi announced at the Boao Forum for Asia that financial openness is the primary task of China's opening up to the outside world.China's financial openness has entered a new stage of development.Since the reform and opening up,while China's financial opening process has advanced,China's economy has also grown at a high speed.The investment structure of the whole society has changed from the past fiscal-oriented to financial-oriented.Finance has become an important engine for promoting the upgrading of China's industrial structure.The rapid growth of the national economy,the adjustment of investment structure and the development of finance have all promoted the optimization and upgrading of China's industrial structure and the transformation of its economic structure.However,with the changes in the international economic situation and the accumulation of many contradictions since the domestic reform,China's economic development has entered the"new normal" stage.Under such new historical conditions,the implementation of supply-side structural reforms and the promotion of economic structural transformation have become the most important tasks of our country.Financial openness is the direct driving force for promoting the transformation of new and old kinetic energy,high-quality economic development and industrial structure upgrading.The 13th Five-Year Plan also clearly pointed out that it is necessary to improve the efficiency of the financial services entity economy.How to promote further financial openness,use financial dividends to promote reforms,lead the economic restructuring,and promote the upgrading of industrial structure,which has urgent practical significance for China's economic development.However,the existing literature studies more about the economic growth effects and risk mechanisms of financial openness,while there are few studies on financial openness to promote economic restructuring and industrial structure upgrading.Financial opening can promote international capital flows,increase the conversion rate of savings investment in a country,optimize domestic financial structure and investment structure,and promote the rational allocation of funds among industries.thus affecting the optimization and upgrading of industrial structure.Therefore,this paper aims to combine the basic national conditions of China at this stage and the international background of economic globalization to conduct theoretical and empirical research on the impact of financial openness on industrial structure upgrading,and to drive China's industrial structure upgrading and economic structure for the current stage of financial opening.Transformation provides theoretical support and policy advice.Focusing on the relationship between financial openness and industrial upgrading,this paper uses financial openness theory and industrial structure theory to build a theoretical framework for the interaction mechanism between the two.On the bases of reviewing and analyzing China's financial opening process and industrial structure evolution,combined with measurement the empirical test method of economics.this paper empirically analyzes the impact of China's financial openness on the upgrading of industrial structure.The empirical results show that financial openness has a significant role in promoting the upgrading of China's industrial structure.According to the theoretical and empirical analysis results,several policy recommendations are proposed:(1)Coordinate and promote the financial opening process in an orderly manner,and harvest the best benefits of industrial structure upgrading;(2)Guide the healthy development of the domestic financial industry and enhance the financial services of the financial services;(3)Innovate the opening up of industrial policies and optimize the industrial structure upgrading the policy environment.