An Empirical Study On Financial Development And Industrial Structure Upgrading In BRICS Countries

Promoting sustained and healthy economic growth is the goal of every country,and the upgrading of industrial structure is the key to economic growth.Both theoretical research and the historical experience of developed countries show that financial development has played an important role in the upgrading of industrial structure.Therefore,BRICS countries,mainly with emerging economies,try to improve the level of financial development and then influence the upgrading of their industrial structure.In this process,we can see that,on the one hand,along with the continuous improvement of the financial development level of BRICS countries,the proportion of tertiary industry represented by emerging industries in GDP is rising.On the other hand,there are still unreasonable areas in their industrial structure,which affect their healthy economic development.Therefore,whether the financial development of BRICS countries can really promote the upgrading of industrial structure has become a question worthy of study.Therefore,this paper focuses on the relationship between financial development and industrial structure upgrading in BRICS countries.Based on the research results and methods of scholars at home and abroad,and on the basis of data facts,this paper uses panel threshold model to study the non-linear relationship between the two.At the same time,the financial development indicators are measured from three angles: scale indicators,efficiency indicators and structural indicators,while the industrial structure indicators are measured by different indicators,namely,output value structure indicators and employment structure indicators.In the empirical test,based on the data from the World Bank's open database,this paper selects the financial development and industrial structure upgrading data of BRICS countries from 2003 to 2017,and uses the panel threshold model to empirically test the impact of financial development on industrial structure upgrading in BRICS countries.The empirical results show that the financial scale,financial efficiency and financial structure of BRICS countries have a non-linear single-threshold effect on the upgrading of industrial structure,and have a positive threshold effect.It is particularly noteworthy that the three dependent variables representing the level of financial development have a more significant positive effect after the threshold value.However,we should also pay attention to the coefficient of the financial structure indicators affecting the upgrading of industrial structure.Although the value is positive,its significance is not obvious.This shows that the rising financial level of BRICS countries in recent years has generally promoted the upgrading of their industrial structure,but unreasonable financial structure still restricts the further upgrading of industrial structure.Based on the above findings,considering the actual situation of our country and the actual development of BRICS countries,this paper puts forward some suggestions,such as promoting the reform of financial system,expanding the proportion of direct financing,and developing multi-level capital markets to enhance the ability of financial services to the real economy.