The Path Research Of Financial Innovation Support Manufacturing Industry Upgrade

From a manufacturing giant to a manufacturing powerhouse,China urgently needs to upgrade its manufacturing industry.This paper studies the current situation of China's financial innovation and manufacturing industry development,and proposes the triple financial dilemma facing the transformation and upgrading of China's manufacturing industry.which leads to the need of China's manufacturing industry to improve the relative technological level and relative value-added of the manufacturing and production link,so as to achieve the purpose of manufacturing industry transformation and upgrading.While financial innovation can actively support the structural reforms on the supply side,financial innovation can support the transformation and upgrading of manufacturing industries.The path analysis section focuses on the exploration of financial innovation through the three major mediations,which are financial development level,consumer demand,and technological progress.Firstly,financial innovation promotes the upgrading of manufacturing and production link by raising the level of financial development in terms of scale expansion,structural optimization,and efficiency enhancement.Secondly,financial innovation influences the upgrading of manufacturing and production link by affecting the scale and structure of consumer demand.Thirdly,financial innovation provides guarantee for technological progress,which leads to the realization of improving the technological level of manufacturing and production link.In the empirical research part,the data of Beijing,Hubei,and Yunnan provinces from 2005 to 2016 are selected as the representatives of China's eastern,central and western regions,and a comprehensive evaluation index system for financial innovation,financial development level,consumer demand,technological progress,manufacturing and production links are constructed.Based on this,a structural equation model was established to test the transmission path of financial innovations in China and its representative provinces and cities for the upgrading of manufacturing and production links.Through the above research,the following conclusions have been drawn:Theoretically,China's financial innovation can promote the upgrading of the manufacturing and production link by raising the level of financial development,upgrading the consumer demand,and technological advancement.Empirical analysis of the structural equation model shows that China's financial innovation has a significant effect on the path of the upgrade of the manufacturing and production link through the upgrading of consumer demand,but shows no significant effect through the path of financial development level and technical advancement.This requires China continue to deepen the financial innovation and even the entire financial system's support for technological progress and manufacturing and production link.In addition,the distinctiveness of the specific path between different provinces and cities in China is slightly different,showing the particularity of the impact of financial innovation in different regions on upgrading the production and manufacturing value chain link,and provides an improvement directions for further financial support for manufacturing industry upgrades.