The Research On The Effect Of Financial Development And Financial Structure On China’s Technological Progress

Technological progress from the preparation,research and development,experiment,to its commercialization,industrialization,and every aspect of capital accumulation is closely related,and even can be said that if there is not enough capital accumulation,the new technology is difficult to market,or even difficult to get Perfect experiment.At the same time,a highly efficient,relatively perfect financial system must have a relatively smooth transmission mechanism,such a transmission mechanism can quickly gather capital.The combination of financial and technological progress can be more quickly the latest science and technology from the nurture into results,then the scientific results into social productive forces.In order to explore the new way of economic growth and further promote the level of technological progress,this paper studies the financial development and financial structure to promote China’s technological progress and other issues.First of all,this paper analyzes the total factor productivity of 31 provinces(autonomous regions and municipalities)in China from 2005 to 2014,using the DEA-Malmquist method to decompose the total factor productivity(TFP),thus the technical progress Change as an explanatory variable by empirical analysis in this paper.Then,the investment indicators-the financial system with financial development,financial structure,two indicators to reflect.The rapid development of financial aggregate can quickly gather financial capital to generate capital accumulation.China’s financial structure has not changed much in recent decades,still dominated by banks,financial markets in the financial structure of the development to be far Smaller than the bank size.Based on provincial panel data,from the regional perspective,through the analysis of provincial financial system and technological progress,we try to find out the influence mechanism of financial development and financial structure on the development of technological progress,and then to our country’s technological progress and financial system To provide useful policy recommendations.In this paper,fixed-effect estimation,tool-variable estimation and two-stage least squares method are used to analyze the relevant variables,and the following conclusions are drawn.(1)The total factor productivity(TFP)of China’s 31 provinces(autonomous regions and municipalities)from 2005 to 2014 was studied.It was found that China’s TFP and technological progress index fluctuated during the past decade.The level of science and technology in Western China,Or on the growth rate in the past 10 years are far behind the eastern region,resource allocation to be further optimized.(2)Financial development has greatly promoted the development of China’s technological progress,but the financial development environment to improve the level of education provided by the lack of funds,lagged behind the accumulation of human capital in China.China’s financial internal structure is dominated by banks rather than financial markets,but the financial structure of the main bank indicators for China’s technological progress has no significant impact to the stock market as the representative of the financial market to promote China’s technological progress to improve.(3)The causal relationship between financial development and technological progress is latent.First of all,the development of the financial industry through the accumulation of capital to promote technological progress.Second,in the opposite causal relationship,technological progress to promote economic growth,good economic growth environment can improve and perfect the financial system,thereby promoting financial development.The endogeneity of financial development will affect the extent of financial structure and financial development on China’s technological progress to a certain extent.According to the conclusion,this paper put forward the following two aspects of policy recommendations(1)to increase the financial services in the accumulation of human capital.The accumulation of human capital is inseparable from the financial development of the support given to China’s banks and other financial institutions do not play in the human capital should play to strengthen the accumulation of human capital,the risk of decentralized material capital,reduce liquidity Risk and so on.(2)to enhance the financial function of technological progress,a comprehensive optimization of the financial system.In order to perfect the external environment of finance,we must carry out a comprehensive improvement on the policies,laws enacted by the government and so on,and the government should introduce relevant policies of preferential,subsidy and support.Reasonable and perfect financial internal structure and the appropriate external environment can provide strong support for technological progress,and give full play to the financial system to promote the role of technological progress.The innovation of this paper is based on total factor productivity(TFP),the use of data envelopment analysis and the Malmquist index to decompose the total factor productivity(TFP)into technical efficiency improvement and technological advancement,and technological progress as technological progress Indicators,compared to the traditional input method(R&D investment)and output method(effective patent number)more comprehensive and reliable.The shortcomings of this paper is that although the financial development index is formed by the financial market and the intermediary,if we want to better reflect the improvement and expansion of the financial market,we need to choose more appropriate and more indicators.Although this paper examines the ways in which financial development and financial structures act on technological progress,there are other ways of doing so,and further analysis is needed.