The Study Of The Effect Of Financial Development On The Upgrading Of Structure Of Manufacturing Industry

As an important engine of economic development, the manufacturing sector have made a great contribution for our country to make such remarkable achievement in the past 30 years. However, with the advancement of industrialization, many of the traditional manufacturing sectors has been suffering serious overcapacity problem. At the same time, due to the gradual disappearance of low-cost advantages of factors of production, the manufacturing development model driven by low-cost elements can’t sustain any more. As a result, the development of China’s manufacturing industry now is facing a severe challenge. How to promote the upgrading of manufacturing has become an urgent problem problems. As a very important part of producer services, the financial services industry has always been the core element of modern economy. As the crucial input of the development of manufacturing, producer services especially financial services sector can improve the efficiency of the manufacturing industry. According to this logic, the development of financial plays a positive role in promoting the upgrading of the structure of the manufacturing industry. However, after analyzing the central region of China’s financial industry and the manufacturing situation, we found that the rapidly rapid development of financial seems makes no significant impact to the manufacturing. It is this anomaly which raise the author’s interest: what kind of role that financial play in promoting the upgrading of the structure of the manufacturing. Begin with this question, this paper studied the impact of financial development make to the structure upgrading of the manufacturing sector.This paper focuses on the impact of financial development and upgrading of the main structure of the manufacturing industry. By using measurement of industrial structure theory and the theory of financial development, combined with the status of our financial development of the central region, we establish a basic theoretical framework concerning the influence that the financial development have on the upgrading of manufacturing structural. Because manufacturing means upgrading to innovation-driven development paradigm shift from factor-driven model of development, we classify the manufacturing sector by using technology-intensive. Based on this classification, we take the proportion of the industrial value added of high-tech in the manufacturing as a whole as an index to measure the structural upgrading. Based on the research of financial development theory, industrial structure theory, this paper start a detailed analysis of the mechanism of financial development on the upgrading of the manufacturing sector, and then analyze the influence of financial development on manufacturing structural upgrading in the central regional. The result of our paper suggest that in the central regional financial development can promote the structural upgrading of the manufacturing sector, but we should keep an eye on the financial development, and to make good use of the capital market as a role of allocating resources. Finally, we prompt some suggestions on how to strengthen the financial development’s impact on manufacturing sector, in hoping that it can make a contribution to promoting economic development in the central regional.