Research On Financial Agglomeration,R&D Capital And Industrial Total Factor Productivity

After nearly 40 years of gradual reform of the economic system,China's industry has significantly strengthened its comprehensive strength.However,there are also many deep-seated problems behind the achievements that have attracted worldwide attentions,such as unreasonable industrial structures,lack of independent innovation,lower efficiencies in the utilization of the resources and lower quality and efficiencies of financial institutions for the industrial transformation,all of which,on the one hand greatly restrict the upgrading and further development of our industry.On the other hand,with the gradually growing of high and new technologies based on the new generation of information technology,through the deep blending with industry,it promotes the birth of horizontal and networked industrial form,and significantly reduces the uncertainty in the process of production and transaction.And it is leading a new round of industrial revolution,and also makes the financial resources in the industrial sector in China to continue to gather and deepen,which is a major opportunity for China to complete the transition from a large industrial country to an industrial power.The State Council has clearly put forward in "Some opinions on Improving the Efficiency of the Stable Growth and Adjustment Structure of Financial support Industries" that financial institutions must closely integrate industrial efficiency gains and upgrade,which create favorable conditions for industrial supply-side structural reforms and the steady industrial growth,structural adjustment and efficiency enhancement."Made in China 2025" plan also pointed out that industrial development must adhered to the "Innovation-driven" basic policy.This article closely combines the present economic development situations,constructs the analytical framework for financial agglomeration,the R&D capital and the industrial TFP by paying a pratical survey on the financial agglomeration,R&D capital and the influencial effects of their coordination on the TFP and the transmission mechanism in order to benefit the rational allocation of industrial elements and resources in China and to provide the experience for promoting the transformation of China's industry to innovative driving.First,The total factor productivity(TFP)and its decomposition part of 33 industrial industries in China are measured by using DEA-Malmquist index method.Technological change(TE)and technical efficiency change(EF)are also used to measure the total factor productivity as a whole and the subdivision industries.Some of the trends are analyzed in depth.The results show that the promotion of total factor productivity of industry in China mainly depends on technological progress,but the overall level of technical efficiency of the industry is low,so it is urgently needed to optimize the industrial structures in order to improve the allocation of resources and the efficiency of production.The technological progress in different fields is different on a large scale,while heavy industry and chemical industry is prominently superior than light industry.Secondly,on the basis of effectively measuring the total factor productivity of industry,the dynamic panel model is constructed and the regression analysis is carried out via the method of systematic GMM estimation to investigate the direct influence of financial agglomeration and R&D capital on the industrial total factor productivity.Through the expansion of the basic model and the construction of intermediary effect model,the paper verifies the intermediary conduction effect of R&D capital on financial agglomeration and total factor productivity of industry.The results show that the R&D capital plays an intermediary role in financial agglomeration and industrial total factor productivity(TFP).Financial agglomeration has a negative direct effect on the increase of total factor productivity of industry,but at the same time,R&D capital is working as the intermediary system which can improve TFP to some degree,that is,direct effect and indirect effect will weaken each other,shadowing effects emerge.Finally,according to the research results and combining with the status quo of China's industrial transformation,the corresponding policy recommendations are put forward.As far as financial development is concerned,we should continue to promote the reform of financial liberalization on the basis of normative development,guide the rationalization and high-efficiency development of financial markets,and further strengthen the financial service for the real economy.As far as governmental policy supports are concerned,All levels of government should constantly increase their supports on the R&D activities of industrial enterprises to ensure that the strength and development directions of industrial supports are in line with the actual needs of enterprises.As far as the main body of the enterprise is concerned,the industrial enterprise should build and perfect the internal R&D innovation system,and continuously improve the efficiency of the funds of scientific and technological innovation.