An Empirical Study About Financial Development And Industrial Structure Evolution In China

Financial development has an important promotion function to develop the nation's overall economic strength and the industrial structure. The financial system will promote the rational allocation of resources and lead the industrial structure to be more reasonable and higher by sucking the decentralized social capital. Compared with Western developed countries, China's industrial structure which is in a lower level hinders the development of the market economy. Under the currently complex economic situation, it is imperative to speed the readjustment of the industrial structure up while the financial plays an important role in industrial structure evolution. Researching on the relationship between financial development and industrial structure evolution is the key to practice optimizing the allocation of financial resources and upgrading of the industrial structure, the research has the important practical significance.The article introduces the relevant theories of financial development and industrial structure evolution and literature from some scholars first. Based of this, the article discusses the financial mechanism acting on industrial structure evolution and analyses the feature of industrial structure evolution and financial system development and the relationship between each other.Secondly, the article uses of empirical analysis to study the relationship between China's financial development and industrial structure evolution. It analyzes the financial development affecting to internal optimization of tertiary industrial structure. The results show that China's financial development has a long-term relationship with the primary, secondary and tertiary industries'output value. The financial development and the proportion of primary industry output has a weak causal relationship. The output growth from secondary and tertiary industries brings the advance of financial development; however, the lever of financial development does not impact the change of the output value's proportion. Financial development has an impact in the growth of the tertiary industry's internal output value. Banking institutions plays a more important role than capital market in output value impact; financial development has a small influence in optimization of tertiary industrial structure. This result indicates that China's financial development lags behind economic development and the industrial structure evolution, the efficiency of resource allocation in financial system needs to enhance.Finally, based on the research, the article put forward a proposal to push financial development for the sake of promoting industrial structure evolution. The article includes the following suggestion, like improving the efficiency of resource allocation in financial system; enhancing the capital support to Non-state economy; making the financial policy to play a guiding role for industrial structure evolution; speeding up the market-oriented renovation in financial system; improving the market competition mechanism; improving the financial system structure actively; developing of various forms of financial institutions, etc.