The Financial Service Support In The Transformation And Upgrading Of Manufacturing Industry

With the development of economic globalization,the developed countries are restructuring the manufacturing resources of world in order to improve their market competitiveness and expand the manufacturing scale.Because of China’s low labor costs and huge market characteristics, our country has become an important round of national strategic restructuring, which also provides an important opportunity for the development of China’s manufacturing industry.Manufacturing refers to the transformation and upgrading of traditional labor-intensive and technology-intensive manufacturing to modern manufacturing change, which would appear to reconfigure the various phenomena of social resources. In a highly monetized modern society, strong financial support is a key factor in the optimal allocation of resources,and the development of a strong financial support the upgrade process is bound to greatly promote the manufacturing sector.This paper is based on the theory and methods of financial development and manufacturing upgrades to study the issue of the transformation and upgrading of manufacturing industry’s financial support.In the research paper on the basis of the manufacturing sector from home and abroad,this paper is classified manufacturing industry as low-skilled, technical and high-tech industries,and use the statistical methods to analysis the upgrade of China’s manufacturing industry;By introducing the dependent on external financing,the degree of growth opportunities of industry,external direct investment and resource endowments as the control variables,the financial scale, financial efficiency, the size of the stock market as measured by the level of financial industry, this paper analyzes the correlation between the manufacturing and financial sectors using the fixed effects model for China and other manufacturing sub-sectors 2000-2011 panel data and explores the influence of the financial industry to each of China’s manufacturing industry. According to the theory and data analysis to draw relevant conclusions proposed transformation and upgrading of China’s manufacturing industry financial support-related suggestions.The study found: the transformation and upgrading of China’s manufacturing industry is closely related to the development of the financial industry.Our manufacturing and financial developments have grew stably,and play a significant financial role in promoting the transformation and upgrading of the manufacturing sector. Support for China’s financial industry in the manufacturing sector are mainly concentrated in the technology industry and low-tech industries,and high-tech industry is obviously insufficient support; There is different in the different factors.The industry that has a high dependence plays a more significant role in promoting and significant negative effect on growth opportunities for the industry.This paper finds that China’s financial industry resource has a allocation problem; According to the analysis of various industry segments,the paper find that our current financial industry has a greater effect in low-tech industries, which is the major bottleneck restricting of China’s upgrading. In addition, labor endowment is a key factor of industrial upgrading and growth of the industry, but if financial development lag, labor endowment is bound to play a role in restricting hinder labor into the production of high-tech products for real productivity, reducing the promotion effects of labor to upgrade the manufacturing industry.In addition, foreign direct investment also exists an important influence in the transformation and upgrading of the manufacturing sector.