The Upgrading Of Industrial Structure And Industrial Chain Under Financial Discrimination

Starting from analyzing the phenomenon that enterprises of different ownership havedifferent financing cost in our country’s economic system, this research constructs thetheoretical model to expound and prove the effect of the financial discriminationbased on ownership and the resulting financial leakage on the product structure andstructure of industrial chain of the state-owned enterprises and the private enterprises.On this basis, with the help of the data of the product structure and structure ofindustrial chain decomposed from R&D strength and the divided ownership andprovincial panel data, we make empirical tests about the conclusions of the theoreticalmodel. The results show that, on the national level, the financial discrimination hasevidently negative impact to the progress of the R&D intensity and the upgrading ofthe industrial structure. Oppositely, the financial discrimination promotes theupgrading of the industrial chain of the whole country significantly. Comparing thestate-owned enterprises with the private enterprises, we find that the financialdiscrimination has positive effect on the state-owned enterprises’ industrial structureupgrading and industrial chain’s upgrading. At the same time, it has negative effecton the private enterprises’ industrial structure and positive effect on its industrialchain. In this one, the ’financial leakage’ triggered by financial discriminationpromotes the upgrading of the private enterprises’ industrial chain and then drives theupgrading of the whole industrial chain of our country’s manufacturing industry.