Shandong Province's Financial Structure, Technological Innovation And Economic Growth

Shandong province is a pilot area of comprehensive reform for the transformation of old and new driving forces in China.Financial structure and scientific and technological innovation play an increasingly prominent role in the economic growth.In recent years,Shandong province has continuously taken measures to stimulate scientific and technological innovation,adjusted the financial structure,and made continuous efforts to realize the strategic transformation.However,compared with regions that has similar economics growth rate with Shandong province,the development of economics in Shandong is accompanied by low efficiency of financial development and low level of scientific & technological innovation.The nature of financial capital is to seek profit and the characteristic of scientific technology is full of risks and benefits,which means that both are bound to be interrelated and influenced with each other.Whether the financial structure coordinates and interacts with the level of scientific technology innovation determines the vitality of scientific technology innovation,the vitality of financial market and the potential of economic growth.The matching of financial structure and scientific technology innovation can promote the level of scientific technology innovation and then effectively promote economic growth.In order to study the relationship between financial structure,technological innovation and economic growth in Shandong province,selected the panel data of 17 cities in Shandong province,chosen appropriate explanatory variables,improved the traditional adjacent or distance weight matrix,used economic distance and time distance weight matrix,established the Spatial Durbin model SDM,empirically analyzed the relationship among financial structure,technological innovation and economic growth in Shandong province.The result shows that there is a positive spatial correlation of economic growth between each city in Shandong province which means that the economic growth of different regions is interrelated.With other variables unchanged,From the direct effect analysis,we can learn that technological innovation has a positive impact on local economic growth,but the result is not significant,which means that the level of scientific technology innovation in Shandong province is not high as a whole and contributes little to economic growth.Moreover,technological innovation has a significant competitive effect among cities,which has caused a negative impact on economic growth.This shows that there is not only no positive spillover effect of the scientific technology innovation in Shandong province but also has negative competition.The direct effect of bank concentration shows that it has a positive impact on economic growth,which indicates that four state-owned major banks have a greater impact on economic growth in Shandong and the role of small and medium-sized Banks in economic growth remains small.In terms of direct effects,the coordination and interaction between financingstructure and technological innovation can promote economic growth.However,the finance structure has a significant negative impact on economic growth,indicating that Shandong province belongs to BS type.According to the empirical results and drawing on the ideas of New Structural Economics thought about the optimal financial structure,as well as classical and new classical economics growth theory about comparative advantages to explore the mechanism of the main explanatory variables on regional economic growth.In order to realize the development strategy in Shandong province,we put forward corresponding policy suggestion.