Analysis Of The Influence Of China's Financial Development On The Adjustment Of Industrial Structure

With the new normal economy in China,especially the socialist market economy with Chinese characteristics has entered a new era,the function of resource allocation has played an increasingly important role in the market.As the bloodline of the modern economy,finance and various economic sectors have made the connection between capital circulation and allocation even closer.This has made the role of allocation of production resources even greater and more obvious.It has optimized the industrial structure and transformed the development mode.The important role played by factors such as the combination of factors of production,the power to transform growth,and the improvement of total factor productivity has also been highlighted.Therefore,financial development is particularly important for the rationalization and advanced adjustment of the industrial structure in the future.Under this background,it is more practical to study the impact of China's financial development on industrial restructuring.First of all,the paper has fully combed the theory of financial development and industrial structure.From the perspective of total financial development and the structure of financial development,the paper examines the relationship between China's financial development and industrial restructuring at all stages.Secondly,the paper starts from seven aspects:industrial contribution,population and employment,energy consumption,consumption and savings changes,technological innovation,foreign trade,financial revenue and expenditure,and selects 34 indicator variables to measure the development of China's industrial structure from 1979 to 2016.The factor analysis method finds the main factors affecting the adjustment of China's industrial structure.Next,establish a VAR model of financial development and the main factors affecting the industrial structure adjustment,and specifically analyze the impact relationship between variables through the impulse response function and variance decomposition technology.Comprehensive practical investigation and empirical results concluded that financial revenues and expenditures,technological innovation,industrial contribution,consumption,and savings are all major factors influencing the adjustment of industrial structure.Financial development depends mainly on M2,bank loans,bonds,and finance.The correlation rate influences industrial structure adjustment through fiscal revenue and expenditure,technological innovation,consumption and savings,and industrial contribution.Based on the above analysis conclusions,combined with the main contradictions in the process of industrial restructuring in China's financial development,the paper puts forward proposals to promote the optimization and upgrading of China's industrial structure,that is,to fully realize the fund allocation function of financial markets,explore diversified financial development channels,and tap The development potential of the industries with good prospects for development will be strengthened to guide the adjustment of monetary policies to industrial restructuring.