The Level of Financial Development, Digital Inclusive Finance and the Upgrading of China's Industrial Structure

Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v5i2.1986

Aiqi Li

Xiamen University Tan Kah Kee College, Zhangzhou 363100, Fujian, China

Abstract

Economic theories that explain the transformation of industrial structure focus on factors such as fluctuations in relative prices of products and income growth. In addition, in recent years, with the characteristics of increasing financial development, rapid development of digital economy and fluctuating inward investment, the existing literature lacks a unified theoretical framework to evaluate the relative importance of all these factors. To this end, this paper studies the influencing factors of China's industrial structure transformation, and constructs a panel model by using the data of each index of 282 prefecture-level cities in China from 2011 to 2019, and quantitatively evaluates the impact of the five effects on the industrial structure transformation. The results show that: first, the financial level has a significant role in promoting China's industrial structure; second, in recent years, China's investment in the service industry, information industry and financial industry has been increasing; third, at the regional level of China, there is a positive relationship between per capita GDP and industrial structure. Therefore, in the future, China needs to focus on guiding the development of the financial market and making the industrial structure move in the direction of optimization.

Keywords

industrial structure upgrading, financial development level, empirical analysis

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