The best way to conference proceedings by Francis Academic Press

Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

The Conduction Mechanism and Related Empirical Study on the Impact of Economic Financialization on Industrial Investment Rate

Download as PDF

DOI: 10.25236/icemeet.2019.197

Author(s)

Pan Yu

Corresponding Author

Pan Yu

Abstract

Modern market economy is based on a high degree of monetization and credit. Finance has become the core and hub of modern economy. Financial development contributes greatly to economic growth and plays a vital role in economic development. Firstly, this paper constructs the investment decision-making model of micro-enterprises under the financial environment, and then makes an empirical analysis based on the theoretical model to explore the direct and indirect impact of financialization on the industrial investment rate. The empirical study analyzes the effects of economic financialization on the rationalization of industrial structure, the upgrading of industrial structure and the equalization of industrial structure. The results of the cointegration test show that the economic financialization and industrial structure are rationalized and advanced in the same direction, and the industrial structure is balanced in the opposite direction. The financial aggregate structure can influence the savings rate, the savings investment conversion rate, the marginal productivity of capital, and the entrepreneurial innovation activities through financial functions, thereby affecting capital accumulation and technological innovation and promoting economic growth.

Keywords

Financialization, Industrial Investment Rate, Empirical Research