Research On Financial Development And Industrial Structure Upgrading

After more than 30 years of rapid development,China's economic development has entered the “new normal”.At present,China has entered a new period in which it has to simultaneously deal with the slowdown in economic growth and make structural adjustments,and absorb the effects of previous economic stimulus policies.Supply-side structural reform is an important starting point for promoting China's economic development and an inevitable choice for promoting the sustained and healthy development of China's economy.The new round of scientific and technological revolution and industrial transformation trends continue to increase.The international industrial division of labor and the trade environment have undergone major changes.Hence,we must promote the transformation and upgrading of industrial structure.As the core of the modern economy,finance plays an important role in industrial structure upgrading and economic restructuring.Under the current economic situation,it is meaningful to study how finance influence the upgrading of industrial structure.This paper reviews and sorts out the classic theories related to financial development and industrial structure.On the basis of theoretical research,this paper discusses the path of industrial structure upgrading and the financial support mechanism.In the empirical research part,this paper uses the data of 31 provinces,municipalities and autonomous regions in China from 2004 to 2016 to establish a dynamic panel model and a threshold panel model for empirical analysis to study the impact of financial development on the industrial structure upgrading.Through empirical research,it is found that the financial support is not always effective in the process of industrial structure upgrading.Finally,this paper proposes policy recommendations on how to promote the transformation and upgrading of the industrial structure.