The Nexus Effect Between Financial System And Real Economy

Financial system is an important sector in economic development.The high-quality development of real economy could not separate from the perfect cooperation of financial system.The essential requirement of finance is to serve the real economy and meet the needs of economic and social development.Although the financial system and the real economy of our country complement each other,there are some contradictions.After the supply-side structural reform was putforward,the ability of financial system to serve the real economy has been attached great importance.On the one hand,the financial system provides funds to promote the optimization and upgrading of industrial structure,which can improve the financing efficiency of the real economy.On the other hand,as an important part of the service industry,the financial system directly contributes a part of the output to the real economy.As an important part of financial system plays in the development of real economy.In order to better develop the ability of financial services to the real economy,this paper divides the financial system into three parts: financial structure,financial efficiency and financial scale.The adaptability between these three parts and real economy development is separately.Then different kinds of financial services were useed to analysis of real economy development.The empirical method analyses the dynamic correlation between the three parts of the real economy and the financial system,and finally explores the adaptive path between the financial system and the real economy.Because this paper mainly uses data at the provincial level,it is more comprehensive and detailed than previous studies.The main contents of this paper are as follows:Chapter 1 and Chapter 2 are introduction and literature review.Firstly,this paper introduces the research background and ideas,defines the real economy and financial system,and proposes to divide the financial system into three parts: financial structure,financial efficiency and financial scale.This paper expounds the previous scholars' research on the relationship between financial system and real economy,as well as the relationship between the three parts of financial system and real economy.However,with the continuous development of financial market and real economy,some research conclusions are contrary to the actual development.This paper explains and analyses this.After sorting out the relevant research on financial system and real economy development,we find that the relationship between financial system and real economy development is complex and changeable.In different economic environments,the role played by financial system is different.Therefore,under the background of strengthening the real economy capability of financial services in China,this paper will focus on me.This paper studies the adaptability of financial system and real economy development,and explores the path of financial system and real economy development.Chapter 3 is the research on the current situation and correlation between financial system and real economy.Firstly,this paper explained the present situation of financial system and real economy development,and analyzed the problems existing in the financial system and real economy development,then studies the financial structure,financial efficiency,financial scale and the degree of adaptation of real economy in the financial system of our country by means of grey correlation analysis method.The results show that the financial system will adapt to the real economy.It is reasonable to divide the system into three parts.After the supply-side structural reform is putforward,the financial structure has the greatest contribution to the real economy development.The financial efficiency has a high correlation with the real economy development.The correlation between the financial scale and the real economy is weak in the sample observation period.The growth of financial scale does not match the ability of stimulating real economy.Based on the problems found in the study,the following paper respectively analyses the dynamic relationship between financial structure,financial efficiency and financial scale and real economic development,in order to give full play to their advantages in real economic development,and make up for the shortcomings of financial system operation.Chapter 4 is the nexus effect of financial system and real economic development: Based on the spatial spillover effect of financial structure.This paper divides financial structure into two parts: macro-financial structure and financial industry structure.It studies the spillover effect of inter-provincial financial structure and real economy development by using Durbin model.The results show that local financial market structure and securities industry structure have direct positive effects on real economy development.Through the indirect effect analysis,it found that the macro-financial structure has spillover effect.The geographical location of the adjacent areas provides convenience for the flow of financial resources,realizes the sharing and complementarity of financial resources,and is conducive to improving the level of real economic development.However,the financial resources in the adjacent areas are also competitive.The adjacent areas will imitate the perfect financial structure and even produce malicious competition.If not handled properly,it will have a negative impact on the real economic development.From the overall effect,macro-financial structure has a significant impact on the region and adjacent areas,but the impact of the financial industry structure is not significant,regardless of the contribution to the real economy of the region or adjacent areas are small.When constructing the financial structure and the path of real economic development,we should consider more about the impact of macro-financial structure and improve the overall level of the financial industry structure.Chapter 5 is the nexus effect of financial system and real economic development: Based on the dynamic effect of financial efficiency.Firstly,this paper briefly expounds the efficient market hypothesis as the representative theory of financial efficiency,and puts forward the hypothesis that China's stock market has reached a weak efficient market.This paper compared the returns of timing-trading strategy and buy-and-hold strategy.It found that investors could obtain excess returns through technical analysis in Chinese stock market,which indicates that information asymmetry exists in the stock market,and that China's stock market has not yet reached a weak efficient market state,indicating that the efficiency of resource allocation in the financial system still exists.This paper analyzed the relationship between financial efficiency and the real economic development,and compared the difference between static model and dynamic model.The results show that the GMM model of dynamic system has a more significant estimation coefficient,and the insurance compensation ratio has a stronger correlation with real economic development,followed by the savings ratio,while the deposit-loan ratio of financial institutions is higher than that of real economy.The reason is that the development of the insurance industry is relatively slow,and the marginal effect of improving the efficiency of the insurance industry on the real economy is large.However,our financial institutions have strong ability to deposit and lend,and sufficient funds are conducive to promoting the development of the real economy.But when the real economy develops to a certain level,the way of financing can not be limited to lending through financial institutions.Constructing a multi-level financial market system is more conducive to the development of the current real economy.This chapter points out the direction for building a suitable path between financial efficiency and real economic development.Chapter 6 is the nexus effect of financial system and real economy: Based on the threshold effect of financial scale.This paper carries out threshold effect regression on time series data and panel data respectively,and finds that financial development has a significant positive effect on the real economy.The results of both national time series data and provincial panel data show that there is a double threshold effect on financial scale.At the national level,when the financial scale is in the area between the two thresholds,the promotion of financial development to the real economy is the greatest.Once exceeding this area,financial development still maintains a positive promotion to the real economy.At the inter-provincial level,when the financial scale is below a certain threshold,the financial development has an inhibitory effect on the real economic growth.When the financial scale is between two thresholds,the financial development has a positive effect on the real economic growth.When the financial scale exceeds the threshold area,the financial development has a positive effect on the real economy.The main reason for the difference between the national and provincial results is that there is a big gap in the level of financial development between provinces in China,and there are significant differences in the stock of financial scale.For the less developed areas,the financing cost is high,the financial scale has not reached the threshold value,and the development of real economy is hinder.The number of financial institutions in developed areas is large.The stock of financial scale is large,even exceeding the carrying capacity of the real economy,and the marginal effect on the development of the real economy has exceeded the maximum.Therefore,we should pay attention to the difference of financial scale between provinces when we establish the suitable path between financial scale and real economic development.Chapter 7 is the empirical analysis of the nexus effect of financial system and real economy development: Based on the perspective of dynamic correlation effect.This chapter uses the PVAR model to analyze the dynamic correlation between the inter-provincial financial system and the real economy.The results show that the relationship between the financial structure and the real economy is complex,and the dynamic correlation between the macroeconomic structure and the real economy is strong,but the financial industry structure,the financial market structure and the real economy development are negative.Use.There is a positive dynamic relationship between financial efficiency and real economic development.When financial efficiency is improved,the level of real economic development will be higher.However,the financial scale and the real economic development have a negative impact effect.In the analysis of the impact of real economy on financial system,it found that the relationship between real economy and financial system is asymmetric.The impact of the financial system on the real economy is short-lived and time-limited,while the impact of the real economy on the financial system is sustained and time-limited.Finally,based on the above analysis results,this paper proposes that the nexuse between financial system and real economy development should dynamically adjust.It is necessary to improve the structural matching between financial system and real economy development.Give more attention to macro-financial structure in promoting real economy,and coordinate the development of multi-level financial market system to increase financial capital.More allocation of financial resources to key areas and weak areas of the economy.Optimizing the resource allocation function of financial efficiency to the development of real economy.To coordinate financial scale with real economic development.Excessive financial scale will have a negative impact on the real economy.To balance the speed of financial system and real economy development.Real economy should also properly feed back financial development.To optimize the financial supervision system.Financial supervision departments should create a safe environment for the financial system to serve the real economy.Then the paper points out the future research direction.