The Study Of The Effects Of Financial Development On The Industrial Structure Upgrading

Modern economic growth theory has shown that sustainable economic development depends on the transformation and upgrading of the industrial structure. However, the adjustment of industrial structure relied on a sound financial system. Based on the existing research results, this paper analyses the intrinsic mechanism and influencing path of financial development promoting industrial restructuring and upgrading deeply, Then construct an empirical model to analyze the banking, securities and insurance industries’roles in industrial restructuring and upgrading. The empirical results have shown that the increase in banking and securities industries’ scale have a promoting effect on the industrial restructuring and upgrading, but as for insurance industry, this effect is not so significant. At the same time, the improvement of banking efficiency could promote industrial restructuring and upgrading, but securities industry could not. In addition, the degree of people’s participating insurance has a positive correlation with industrial structure optimization level. The improvement of education level and utilization of foreign capital could also promote industrial restructuring and upgrading. After considering the current status of China’s financial development and problems faced by the industrial restructuring and upgrading, this paper gives three policy recommendations, including developing diversified investment main body to improve financial industry scale, building multi-financing channels to optimize the financing structure, cultivate a quality industry professionals, improve the efficiency of utilization of foreign capital.