How Can Financial Scale Affect Industrial Upgrading: Facilitating or Inhibiting? Research Based on Spatial Panel Durbin Model: Direct Effects and Spatial Spillover

Using data from 270 Chinese cities at and above the prefectural level over the period 2000-2011,we examine the impact of financial scale defined as financial stocks,financial agglomeration and financial efficiency on industrial upgrading. In view of direct effects and indirect effects,the increase of financial interrelations ratio facilitates industrial upgrading significantly,while the increase of financial stocks has inverted U-shaped relationship with the degree of the secondary industry and the tertiary industry. Also,the financial agglomeration and financial efficiency has no consistent effect on industrial upgrading.