Internal Relationship Among Financial Structure, Industrial Structure and Economic Fluctuation: A Study Based on Province-Level Panel Data

This paper studies the theoretical mechanism and practical effect of the interaction between financial structure and industrial structure on economic fluctuation. The results are listed as follows. Firstly, no matter in the national level or in the regional level, strengthening the degree of financial structure of the market dominant can slow down the economic fluctuation. Secondly, with the upgrading of economic development, the adjustment of industrial structure from the primary industry to the secondary and tertiary industry is conducive to ironing out the ripples of economic cycle. Thirdly, the matches between the financial structure dominated by banking and the development of the secondary industry, have a certain buffer effect on economic fluctuation. However, the dis-matches between the financial structure and the development of the tertiary industry, have a pro-cyclical effect on the volatility of economic development. Therefore, it is significant to strengthen the construction of direct financing market in adapting to China's economic transformation and the adjustment of economic structure, so as to reduce economic volatility.