The Sino-US Comparison Of Economic Financialization Effect And Experience Reference For China

In the late 70's of 20 century,many countries actively promoted the strategy of financial liberalization,so the financial development began to accelerate,and showed the trend of economic financialization.The manifestation of financialization was that the financial sector was expanding relative to the physical sector,the proportion of financial profits was gradually rising,the financial industry began to rank first in many developed countries,and the expansion of the financial sector made financialization of non-financial corporate sectors,government departments and residents also became increasingly serious.While the process of economic financialization promoted economic growth,excessive economic financialization had aggravated economic fluctuations.The outbreak of the US financial crisis in 2008 was the negative consequence of economic financialization.The fact that M₂/GDP ratio and financial industry's added value/GDP ratio are higher than the United Kingdom,the United States and Japan,and the rising of the financial industry's contribution to GDP reflected that China's economic financialization has been more obvious.The problem“from real to fictitious”and currency idling can also be summarized as financialization.Therefore,it is particularly important for China how to deal with financialization by studying the level of economy financialization and its impact on China's economy,and comparing them with the United States whose level of economy financialization is the highest.After reviewing the relevant literature on the connotation of economic financialization,this paper believes that the essence of economic financialization is with the increasing scale and importance of the financial system,the financial sector gradually plays a leading role in the economy,and changes the behavior of the economic agents and the operation mode of the economic system.Although the concept was put forward relatively late,the theoretical origin of economic financialization can still be found in many theories of schools.Based on the scholars'evaluation system of economic financialization,this paper had established a new system of measurement indicators,based on the development and deepening process of finance in the economy,combining the two perspectives of the previous literature research,from the degree of financial development,the dominant position of the financial sector,and the financialization level of department.The financialization level between China and the United States had been compared.The results showed that there is still a big gap between China and the United States on the finance development degree.The financialization level of the China's government department and residents department is lower than that of the United States.The financial department's dominance and financialization level of corporate department in China is higher than that of the United States.Economy financialization had become an important factor of affecting economic fluctuations.This paper reviewed the function mechanism of financial department expansion,the financialization of residents department of,the financialization of government department,and the financialization of corporate department on economic fluctuations,Then empirically analyzed and compared the relationship between economic fluctuations and economy financialization using four typical indicators that can reflect economic financialization with China and the United States data.The results showed that in the two countries,the financial interrelations ratio,the corporate financialization rate and the financial industry dominance rate are the factors to expand the economic fluctuations;while the government financialization rate can suppress economic fluctuations in China and can expand economic fluctuations in the United States.In the economy development,structural adjustment is more important than the amount,because the optimization and upgrading of industrial structure is the sustained driving force of economic growth.On the basis of reviewing the literatures on financial development and industrial structure,this paper analysed the affecting mechanism of financial department expansion,the financialization of residents department,the financialization of government department,and the financialization of corporate department on the upgrading of industrial structure,then empirically analyzed and compared the relationship between the industrial structure and economy financialization between China and the United States,using the partial least squares regression method.The results showed that in the empirical results of industrial structure rationality,the role of financialization variables is different between China and the United States,but similar in the aspect of industrial structure upgrading.Then,the paper analyzed the relationship between enterprise financialization rate and industrial structure using the provincial panel data in Chinad and the dynamic panel regression model.As far as China is concerned,the government's financialization rate is still the driving force for the rationalization and upgrading of China's industrial structure,The FIR played a role in promoting the rationalization of China's industrial structure,while the FIR,the dominance rate of financial industry and the enterprise's financialization rate do not played a role in promoting advanced industrial structure..There is no doubt that the United States is a typical representative country of economic financialization,and its process and impact of economic financialization have important reference significance for our country.The United States regarded the financial industry as the chip of future economic development,which made the financial industry develop rapidly and the degree of financialization increase continuously.Financialization had played an important role in technological innovation and development,industrial structure upgrading,economic growth and strengthening the hegemony of the United States dollar.However,the excessive degree of financialization also brought many problem such as the hollowing of industry,the enhancement of economic vulnerability and the decline of the dollar and so on.The fact of the United States has proved that economic financialization can not maintain a country's dominant position as a bargaining chip for economic development,and finance can not develop without the real economy.According to the above conclusions and the current economic and financial situation in China,in the process of guiding finance to return to its source,promoting"the return of funds to real economy"and realizing the coordinated development of fictitious economy and real economy,it is necessary to work together for government departments,financial departments and enterprise departments:improve the degree of government financialization and give full play to the guiding role of the government;reduce the degree of enterprise financialization by a large margin and encourage enterprises to make real investment;promote the reform of financial system and improve the efficiency of financial resource allocation;strengthen the reform of financial supervision and prevent financial risks;actively implement the financial"going out"strategy to serve the national economy.