Research On The Non-linear Effect Of Financial Development On Promoting Industrial Structure Upgrading

In the real economy,the relationship between finance and economic growth is mainly reflected in the relationship between finance and industrial development.Specifically,the positive effect of finance on economic growth is mainly reflected by the role of the financial system in various industries.The process of economic development is not only manifested in the expansion of economic scale,but also in the continuous optimization process of adapting economic structure to market demand,especially the adjustment and upgrading of industrial structure.The upgrading of industrial structure marks the quality of economic development.The reasonable degree of industrial structure is related to whether a country's economy can maintain long-term sustainable growth.With the transformation of China's economic growth mode and the implementation of supply-side reform policies,the rational adjustment of industrial structure has become the focus of current economic reforms,and has gradually become the main way for China's economy to achieve healthy and stable growth.However,the quality of industrial restructuring in China is still not high,and further improvement is needed.The development of industrial structure is inseparable from financial support.Research shows that there is a strong correlation between financial development and industrial restructuring.Therefore,studying the impact of financial development on industrial restructuring is of great significance for promoting the more efficient adjustment of China's industrial structure.This paper is divided into four parts.Focusing on the theme of the role of financial development in industrial restructuring,we first summarize the research status of the relationship between financial development and industrial structure upgrading at home and abroad.Secondly,the use of industrial structure theory,financial development theory and other multidisciplinary theories,with financial development as the main line,established a theoretical framework for financial development to adjust industrial structure;Then,based on the study of industrial structure theory and financial development theory research results,based on the multi-sector endogenous growth model and the revised AK model,embedding the nonlinear influence mechanism of financial development,constructing the mathematical model to upgrade the financial structure to the industrial structure.The mechanism of influence is discussed;Finally In the perspective of functional evolution,from the two dimensions of financial scale and financial efficiency and combining with panel data of 30 provinces in China from 2004 to 2016,the paper uses the Panel smooth transition regression model(PSTR)to test the nonlinear continuous influence relationship of financial development on industrial structure upgrading.The empirical results found that:(1)There is a clear first-increment and postreduction relationship between the financial scale and the upgrading of industrial structure,and the improvement of financial efficiency has a positive impact on the upgrading of industrial structure;(2)There are significant regional differences in the impact of financial scale and financial efficiency on industrial structure.The financial scale and financial efficiency of the western region have a promoting effect on the upgrading of industrial structure;The relationship between the financial scale and the industrial structure in the central region is characterized by first suppression and promotion,and the promotion effect of financial efficiency is not obvious;The excessive expansion of the financial scale in the eastern region has restrained the optimization of industrial structure to a certain extent,and improving financial efficiency has become an important means to break through the bottleneck of the financial scale and promote the upgrading of industrial structure.Based on the above research conclusions,this paper gives relevant recommendations.