Financial Development,Housing Prices Fluctuation And Industrial Structure Upgrading

Industrial structure upgrading is the key to achieving sustainable economic growth and high-quality development.For the real economy sector,financial system provides financial support and reduces risks for r&d activities,then speeds up technological upgrading,thus promoting the industrial structure upgrading.At the same time,as a kind of labor flow cost,housing prices fluctuation will induce labor flow and affect the choice of enterprise location,which plays an important role in industrial structure upgrading.However,most of the current related studies ignore the impact of the interaction between financial development and housing price on industrial structure upgrading.In fact,housing price continues to rise,China’s financial resources flow too much to the real estate market,which will lead to external financing scale and internal r&d fund scale of the real economy sector is squeezed.But technology upgrading is the key to industrial structure upgrading,thus,the interaction between financial development and housing price cannot be ignored.Therefore,on the basis of relevant research and considering the differences of the financial industry,we discusses the impact of financial development,housing prices fluctuation and the interaction of between the two on industrial structure upgrading,and the above issues are discussed again in three sub-industries(banking,securities industry and insurance industry).Six chapters are included in this paper.Basic background,research significance,innovation and imperfection,related literature and the current situation of China’s financial industry and the real estate industry are introduced in the first three chapters.In chapter 4,we analyze the impact mechanism of financial development,housing prices,and the interaction of between the two on industrial structure upgrading.Chapter 5 employs the panel data of China’s 205 cities at prefecture level and above from 2005 to 2016 to guide our empirical works.We establish the static panel model and adopt the way combining with the two-stage least square and fixed effect model,establish the dynamic panel model and use the system GMM method to analyze the impact of financial development and three sub-industries(banking industry,securities industry and insurance industry)development,housing prices and the the interaction between the two on industrial structure upgrading.The empirical results show that both financial development and housing price can promote industrial structure upgrading,but the interaction between financial development and housing prices can inhibit industrial structure upgrading.Among the three sub-industries,the development of banking industry has the largest promoting effect on industrial structure upgrading,while the interaction between banking industry and housing prices has the largest inhibiting effect on the upgrading of industrial structure.Chapter 6 summarizes the paper research results,and puts forward some policy suggestions on promoting industrial structure upgrading,such as encouraging the comprehensive development of banking,formulating policies to support the gradient transfer and coordinated development of the industry,curbing the irrational rise of housing prices,and promoting the transformation of financial resources from virtual to real and so on.