Research On The Influence Mechanism Of Venture Capital On High-Quality Economic Development

Currently,China’s economy has entered a new stage of development,where the focus is gradually shifting from pursuing "high-speed growth" to improving economic efficiency and quality.To cultivate new engines of economic growth,it is urgent to implement a strategy of innovation-driven development.As an effective financing option,venture capital plays an important role in fostering the rapid growth of small and medium-sized enterprises because it can provide innovative elements such as capital,technology,talent,and management to promote their innovation and development.In addition,venture capital plays a positive role in implementing China’s strategy of innovation-driven development and promoting high-quality economic development.In recent years,although the number of venture capital institutions and the amount of risk capital in China have been increasing year by year,there is still a considerable gap compared to the more mature venture capital markets in developed countries.Continued efforts are needed to become a core driving force in the capital market to promote the real economy.This also provides an opportunity to explore in-depth the role of venture capital in promoting high-quality economic development and the specific mechanisms behind it.This article systematically integrates relevant domestic and foreign literature and studies the mechanism of venture capital’s impact on high-quality economic development from both theoretical and empirical perspectives.Firstly,in terms of theoretical analysis,this article deeply analyzes the mechanism of venture capital’s impact on high-quality economic development based on existing literature and relevant theories,and proposes corresponding research hypotheses.The study shows that venture capital can promote high-quality economic development through both direct promotion and three intermediate pathways of technological innovation,industrial structure upgrading,and income growth.These research results provide a theoretical basis for empirical testing.Secondly,in terms of empirical testing,this article uses panel data from 30provinces(municipalities and autonomous regions)in China from 2005 to2020 as the research sample to empirically test the mechanism of venture capital’s impact on high-quality economic development.The study shows that venture capital has a promoting effect on the level of high-quality economic development,and the impact of venture capital on high-quality economic development varies significantly among different regions.At the same time,venture capital significantly improves the level of high-quality economic development through the three transmission pathways of technological innovation,industrial structure upgrading,and income growth.These empirical results further confirm the research hypotheses proposed in theoretical analysis and provide empirical evidence for further exploring the impact of venture capital on high-quality economic development.