Empirical Study on Financial Development and Optimization of Industrial Structure: A Financial Capital Perspective

From the perspective of financial capital,this paper discusses the internal mechanism that financial development promotes the optimization of the industrial structure.Using the VAR model,it then empirically analyzes their relationship in China.Studies have shown that the optimization of the industrial structure is the process of evolution leading to simultaneous rationalization and upgrading.Affected by the law of social average profit,financial capital will eventually be allocated in a balanced way,resulting in the rationalization on the basis of the upgrading of the industrial structure.In the period ranging from 1952 to 2010,Chinese financial development promotes the rationalization and upgrading of the industrial structure with a significant long-term and time-delay nature.Since reform and opening up,it has promoted the upgrading of the industrial structure but inhibited its rationalization.