The Impact And Mechanism Analysis Of Financial Development On Industrial Transformation And Upgrading

The western region has been China's key development area since the beginning of the 21 st century,and its economic aggregate has taken up an increasing proportion in the whole country.However,its transformation and upgrading task is still severe under the background of the new normal economy.In recent years,the financial industry in the western region has achieved rapid development.The state council and relevant functional departments have also issued a number of policy documents on financial support for economic transformation and upgrading,which further strengthened and guided the role of financial development in promoting economic restructuring and upgrading.Therefore,facing the realistic background of industrial transformation and upgrading in the western region,it is of great practical significance to study the promotion effect of financial industry development on industrial transformation and upgrading and its specific transmission path.Firstly,this paper collates and summarizes the relevant domestic and foreign literature on the relationship between financial development and industrial upgrading,then systematically combs the theory of financial development and industrial upgrading,and elaborates the mechanism of financial development promoting industrial upgrading through three ways:technological innovation,optimizing division of labor and promoting demand,which lays a good theoretical foundation for the full text.On this basis,this paper makes a detailed analysis of the current situation of financial development and industrial upgrading in the western region from 2006 to 2016,and points out the existing problems in the process of financial development and industrial upgrading in the western region.Then,using the panel data of 79 prefecture-level cities in 11 provinces in the western region from 2003 to 2016,this paper empirically studies the relationship between financial development and industrial upgrading in the western region and its transmission mechanism by establishing panel data regression model and intermediary effect model.The research results show that :(1)the financial development in the western region can significantly promote the transformation and upgrading of its industrial structure;(2)financialdevelopment in the western region can achieve industrial upgrading through technological innovation,and there is a partial intermediary effect between the two;(3)financial development in the western region can also play a positive role in promoting industrial upgrading by optimizing the division of labor.The level of division of labor is one of the important ways for financial development to promote industrial upgrading.(4)the financial development in the western region can promote the upgrading of consumer industry by inducing demand,and the demand channel also has partial intermediary effect.Based on the above four conclusions,this paper puts forward specific policy suggestions on how financial development supports technological innovation,optimizes division of labor and causes consumer demand,providing certain reference value for the rapid industrial transformation and upgrading in the western region.