An Empirical Study On Financial Development And The Change Of Industrial Structure In Fujian Province

In the process of economic development,finance plays a very important role in promoting economic development.Finance is essentially a bridge between capital demanders and fund providers,in order to help fund demanders obtain funds to promote the development of enterprises,while also providing interest to fund providers.Finance is the core of the modern economy.It promotes economic development through direct and indirect financing,and provides a continuous source of power for the rapid development of the economy.The development of finance also increased the speed at which the balance of funds and deposits was converted into loan balances,improved the market relationship between capital supply and demand,and promoted the allocation efficiency of capital resources.Recently,in order to enhance the international competitiveness of China's industry,the quality of industrial development and the sustainable development of the industry,the government encourages enterprises to change their development model and promote the upgrading of industrial structure.The optimal allocation of funds plays an important role in the upgrading of industrial structure.The improvement of the level of financial development can theoretically promote the advanced industrial structure.At the same time,with the upgrading of the industrial structure,the tertiary industry,especially the service industry,will develop better,and high-tech enterprises will gradually develop,thereby increasing the income level of residents and increasing the supply of social funds.The upgrading of industrial structure will also play a certain role in promoting financial development.This paper studies the relationship between financial development and industrial structure upgrading in Fujian Province from both theoretical and empirical aspects.In the theoretical part,based on the existing research results,the paper first analyzes the concept of financial development and related theories,and then outlines the concept of industrial structure and related theories.In the empirical aspect,the unit root test,cointegration test,and Granger causality test were used to analyze the relationship between financial development and industrial upgrading in Fujian Province.There is a long-term stable relationship between financial development and industrial structure upgrading in Fujian Province;Granger causality test shows that financial scale and financial efficiency are Granger reasons for the advanced industrial structure,combined with empirical results,financial development and industry in FujianProvince.The relationship between structural upgrades suggests some policy recommendations.