Research On The Impact Of Financial Development On High-Quality Economic Development

China’s economic aggregate has continued to rise,and the achievements in economic development are obvious to all,since the reform and opening up.While achieving achievements,it also faces problems such as waste of resources,ecological damage,accumulation of risks,and population aging.The 19 th National Congress of the Communist Party of China clearly stated that China’s economy should transform its development mode,optimize its economic structure,and transform its growth drivers to achieve high-quality development.As the carrier of economic development,the city is the gathering place for the flow of economic resources,rational allocation of factors and the efficient presentation of corporate competitiveness,and finance can inject blood into the high-quality take-off of the urban economy.Therefore,the current high-quality development of my country’s economy is inseparable from the support and guarantee of financial development.But what is the relationship between financial development and high-quality economic development? How to play the role of finance in the process of high-quality economic development deserves in-depth study.The article first elaborates the impact mechanism of financial development on high-quality economic development from the direct and indirect influence channels.Secondly,the comprehensive index system of financial development and high-quality economic development is constructed from the prefecture-level city level,and the level of my country’s financial development and high-quality economic development is scientifically measured by using the entropy weight method.Select the panel data of 248 prefecture-level cities in my country from 2004 to 2019,and use OLS,fixed effect model,systematic GMM model and mediation effect model to empirically test the impact of financial development on high-quality economic development.Finally,a dynamic panel threshold model was introduced to study the threshold characteristic effect of financial development on high-quality economic development from the aspects of direct impact and indirect impact,and to explore the relationship between the two in depth.The empirical results show that:(1)Although there are fluctuations in the level of my country’s financial development and high-quality economic development,it shows an upward trend.The development of different regions is quite different,showing a trend of high in the east and low in the west.In general,the gap between cities is more obvious,and the problem of imbalance is obvious.(2)The level of high-quality economic development is significantly cumulative and sustainable;at the same time,financial development will promote high-quality economic development,and there are regional differences in its driving role,among which cities in the western region are the strongest,followed by cities in the central region,and cities in the eastern region.weakest.(3)Industrial transformation and upgrading have a partial intermediary effect between financial development and high-quality economic development.The strength of the intermediary effect of cities in different regions is different.The cities in the eastern region are the highest(21.60%),followed by the cities in the central region(15.73%),and finally the cities in the western region(4.01%).(4)There is a non-linear relationship between financial development and high-quality economic development,but there are also regional differences.When the threshold variable is GDP per capita,the promotion effect shows a marginal increasing trend,and the western cities are the strongest,followed by the central and eastern cities.When the threshold variable is the financial development index,the promotion effect at the national city level shows a marginal decreasing trend.However,the promotion effect of eastern cities decreases marginally,the central cities have no obvious threshold effect,and the promotion effect of western cities increases marginally.(5)With the enhancement of financial power,the promotion of industrial structure optimization on high-quality economic development has increased marginally,but there is no obvious threshold effect in cities in the eastern region,and the impact of cities in the western region is greater than that of cities in the central region.Based on theoretical analysis and empirical research,relevant policy recommendations for promoting high-quality economic development are put forward.