The Promotion Mechanism Of Industry Investment Fund And Its Models On Industry Structure Adjustment

Industries in China have confronted with more serious deep-rooted imbalance and periodical problems ever since the21st century. Industry structure adjustment is becoming an era proposition, in which accelerating the development of strategic emerging industries and promoting the upgrading of traditional industries are the key points. In this context, industry investment fund has been growing and expanding. This thesis discusses and tests whether and how industry investment fund facilitates industry structure change, and how Venture Capital and Private Equity perform in this process.The research shows innovation in theoretical framework and empirical approach. As to the former, the thesis brings the micro-effect and the macro-effect of industry investment fund into one unified research framework, which makes up for the lack of systematic discussion in this field. As to the latter, Structural Equation Modeling (SEM) is applied in the research to study the economic problems. To compare the influence path of Venture Capital and Private Equity on industry structure adjustment, empirical section adopts simultaneous analysis of several groups.The study finds that, the development of industry investment fund has obvious positive influence on value creation and R&D input of the micro-effect, on employment growth of the macro-effect. More important, the micro-effect of industry investment fund will pass on to the macro-effect, which finally boosts the advance and rationalization of industry structure. Although VC and PE make difference in investment scale and theoretical mechanism, empirical results show that these two models have the same path coefficients. To some degree, during the process of development, VC and PE have blended with each other in China.The research suggests that, to achieve better promotion effect of industry investment fund on industry structure adjustment, policies may focus on guiding the rational development of the fund industry, constituting multi-level withdrawal channels and balancing the expansion of industry investment fund in different regions in China.