The Influence Of Financial Development On The Upgrading Of Industrial Structure

In the new normal stage of economy,it is an important way to change the mode of economic development and realize the transformation of new and old driving forces by transforming the industrial structure via technological innovation.As the core of modern economic system,finance can effectively allocate social resources,drive technological innovation and upgrading of industrial structure,and propel further economic and social development.In recent years,our government attaches great importance to the role of financial development in promoting the transformation of economic structure,and relevant departments have issued a number of financial development policies to support the transformation of economic structure.Therefore,under the background of "adjusting the structure and changing the way",to study the impact of financial development on the upgrading of industrial structure,and to focus on whether financial development can play a role in the upgrading of industrial structure through technological innovation is of great significance to promote the upgrading of industrial structure and improve the level of economic development.Based on a systematic review of the theory and research on financial development,technological innovation and upgrading of industrial structure,this article integrates various mechanism of the direct impact of financial development on industrial structure upgrading and the mechanism of financial development promoting industrial structure upgrading by promoting technological innovation.Selecting panel data of 30 provinces in China from 2003 to 2017,an intermediary effect model is established using the relevant software for data analysis.This paper examines the direct impact of financial development on the upgrading of industrial structure,and explores whether technological innovation has intermediary effect in the process of financial development promoting the upgrading of industrial structure.After the empirical analysis of the whole sample,this paper further tests the intermediary effect of technological innovation in eastern and central and western regions,and compares the differences between the two regions.Through the empirical research at the national and regional levels,this paper mainly draws the following conclusions:(1)financial development can make a significant contribution to the modernization of regional industrial structure.(2)technological innovation has some intermediary effects,that is,technological innovation is an important channel for financial development to promote the upgrading of industrial structure.(3)there are regional differences in the intermediary effect of technological innovation.According to the research of the theoretical mechanism and the analysis of the empirical results,combined with the development status of China's financial development,technological innovation and industrial structure,this paper makes some proposals to promote the upgrading of the Chinese industrial structure,such as deepening the reform of the financial system,improving the financial supervision system,developing science and technology finance,and improving the financial market system.