Does Banking Structure Have Spatial Effect On Industrial Structure Upgrading?

As a catalyst for industrial development,clarifying the impact between the change of Banking structure and industrial upgrading is undoubtedly an important logical starting point for promoting the financial services real economy for a bank-led country like China.Observations on the coordinated development of the Beijing-Tianjin-Hebei industry show that there is a clear correlation and spatial spillover effect between banking structure,technological innovation,and industrial structure upgrading.However,the existing literature is mostly limited to the research of two-dimensional perspective,and has not responded enough to the development of practice.From the three-dimensional perspective of spatial location,it discusses the logical relationship and mechanism of the impact of the banking structure on industrial structure upgrading through technological innovation,which has become an urgent task to deepen the structural reform of the supply side,promote the innovation-driven development strategy,and enhance the financial service entity's economic capabilities.In view of this,this paper adds the consideration of technological innovation in the study of the spatial effect of banking structure and industrial structure upgrading,and reshapes the key position of technology in the spatial role of both.On the basis of portraying the path of banking structure,technological innovation and industrial structure upgrading,the paper further analyzes its spatial transmission mechanism and uses the spatial Durbin model to analyze the panel data of 30 provinces in China from2003 to 2016.The main findings of the paper are:First,the competitive banking structure promotes the upgrading of industrial structure through technological innovation.The coefficient of interaction between the banking industry structure and the industrial structure upgrading is-4.6882,indicating that the competitive banking structure can optimize the industrial structure through technological innovation.The competitive banking structure improves credit rationing in financial markets,strengthens external governance mechanisms,compensates for regulatory deficiencies,and slows the information asymmetry and moral hazard in the credit market,allowing funds to flow more to small and medium-sized innovative enterprises.Second,technological innovation has a spatial effect on the upgrading of industrial structure.The influence coefficient of the space lag of technological innovation is2.0216,which indicates that the technological innovation of different places has a positive spatial effect on the upgrading of local industrial structure.Technology spillover can replace the original industrial technology(substitution effect),introduce high-end products(complementary effect),reduce operating costs(relative cost effect),change production factor allocation(technical difference effect),and stimulate first-region regional technological innovation(innovation incentive Effects)and other methods act on the production and management structure of different places,which in turn affects the upgrading of its industrial structure.Third,the banking industry structure promotes the upgrading of industrial structure in different regions through the spatial spillover effect of technological innovation.The spatial lag coefficient of the interaction between bank concentration and technological innovation is significant,which is-4.6881.Explain that the banking industry structure can effectively realize the allocation of resources by meeting the credit needs of local enterprises,increase the financial support for technological innovation,promote the technical exchanges of large,medium and small enterprises,improve the internal and external environment of technological innovation,and influence he upgrading of industrial structure in different regions through the flow of technology and talents.Fourth,the external effects of China's provincial industrial structure upgrading are stronger than internal ones.Government behavior and environmental regulation affect the upgrading of local industrial structure,but when considering spatial effects,the internal influences of the two will disappear.Due to the lack of technology,labor productivity and human capital in the post-development area,direct technology transfer will have a stronger industrial upgrading effect in the post-development areas,thus weakening the influence of local indicators.The paper portrays the spatial transmission path of banking structure,technological innovation and industrial structure upgrading,discusses the mechanism of banking structure and technological innovation in China's regional industrial structure upgrading,and strives to provide decision reference for China's banking industry structural reform and industrial restructuring.Contrary to the availability of data,the empirical analysis of the paper only covers 14 years of indicators,which may be difficult to reflect the long-term effects of the banking structure on the upgrading of industrial structure.