Research On The Spatial Spillover Effect Of Financial Development On China’s Industrial Structure Upgrading

With China’s economic downturn,slowing growth,and shifting from high speed to high quality,China has entered a new normal of economic development,entering the period of economic transformation and adjustment,and the adjustment and optimization of industrial structure is the production factor.The process of low efficiency to high efficiency and social resources from low value-added industries to high value-added industries,so the role of industrial upgrading for China’s economic development should not be underestimated.This paper focuses on the impact of China’s financial development on industrial upgrading.Financial development not only has a certain impact on industrial restructuring as part of industrial development,but also can affect industrial upgrading through the optimal allocation of resources such as funds,so research on financial development.The impact of China’s industrial upgrading has a certain positive effect on the transformation and upgrading of China’s economy.Considering the large development gap in various regions of China and the imbalance between the eastern and western regions.This paper intends to establish a spatial econometric model to analyze the relationship between financial development and industrial upgrading in various provinces and cities and the impact of its spatial spillover effects on surrounding areas.This paper considers the theoretical and practical significance of the research,combines the literature review method,theoretical analysis and empirical analysis methods.First,it sorts out the recent research literature at home and abroad,and then analyzes the financial development theory,industrial upgrading theory and finance.The internal mechanism of development and industrial upgrading.In addition,the paper analyzes the financial development and industrial structure changes in recent years.Finally,by demonstrating the spatial correlation between financial development and industrial upgrading,and using the panel data of each province(city)in China for the past 17 years,the space in the spatial measurement model is established.The Dubin model conducts an empirical analysis of the research on the impact of financial development on industrial upgrading.The empirical results show that:(1)industrial structure upgrading has a very significant positive spatial autocorrelation,and there is also a certain spatial autocorrelation in financial development,indicating that there is spatial correlation between explanatory variables and explanatory variables,and spatial geographical factors have significant influence.The provincial industrial structure upgrade;(2)China’s provincial industrial development level will be affected by the financial development level of other provinces and cities and the level of industrial development,and the R2 of the general regression model of fixed effects is significantly smaller than the R2 of the spatial Dubin model.It shows that the goodness of fitting of SDM model is higher,which indicates that there is obvious spatial effect on the upgrading of industrial structure between provinces and cities in China,and it is desirable and feasible to consider the influence of financial development on industrial upgrading;(3)Financial deepening has a very significant positive impact on the upgrading of industrial structure,while financial efficiency has a significant negative impact on the upgrading of industrial structure.The impact coefficient of financial market structure on industrial structure upgrading is not significant,indicating that financial development has upgraded industrial structure.There is a certain impact,in which the degree of financial deepening and financial efficiency have a greater impact on China’s industrial upgrading;(4)The degree of marketization and consumer demand have also significantly promoted the upgrading of the industrial structure.According to the empirical results,the policy recommendations for improving and perfecting China’s financial system are put forward:(1)To increase the degree of financial deepening,we must optimize the indirect financing channels while vigorously developing direct financing channels;(2)Improve the efficiency of financial development,focus on financial development and industrial needs,so that social idle funds can be more effectively applied to corporate investment;(3)Optimizing the structure of the financial market,realizing the financial market structure system by improving the docking mechanism of the multi-level capital market and strengthening the supervision and guidance of financing funds;(4)Focus on the spatial spillover effect of financial development and strengthen contact and cooperation with other regions;(5)Formulate and improve financial policies to support and guide industrial upgrading,on the one hand to establish policy financial institutions,and on the other hand to establish differentiated The capital market system is used to support the development of the financial market and better serve the optimization and upgrading of the industrial structure.