Dissertation > Economic > Fiscal, monetary > Finance, banking > Finance, banking theory

Effect of Financia Development on Technology

Author WuShuang
Tutor QianShuiTu
School Zhejiang Technology and Business University
Course Finance
Keywords financial development technological progress technical efficiency SFA model
CLC F830
Type Master's thesis
Year 2010
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The current economic world view has increasingly been recognized, the high-tech industry as a knowledge-intensive, technology-intensive industries will directly affect the efficiency of the whole industry chain of China’s independent innovation capability and efficiency levels, thereby affecting economic growth in China the speed and quality. Only through increased investment in high-tech industry, promoting technological progress, to achieve sustainable high economic growth. At the same time accompanied by the problem is that high-tech industry, high demand for capital, necessary requirement for the efficiency of the financial system to provide high enough, big enough financial support. In a certain sense, there is no efficient, high-tech companies to cover the whole process of financial support for the operation, there can be no technological progress.According to the modern theory of financial development of new progress, this paper illustrates the financial impact of development on the role of technological progress through theoretical and empirical analysis. This article first high-tech industry as an example, to the country’s 30 provinces, autonomous regions and municipalities directly under 7 years of panel data, this paper examines the financial development and the relationship between technological progress. Autonomous decision-making based on the degree of bank credit, banking market structure, the securities market liquidity, efficiency and financing structure of the stock market to consider, select the private sector, the proportion of loans to total loans, accounted for four state-owned bank assets, the proportion of total banking assets stock market turnover and the ratio of nominal GDP, stock market turnover and the ratio of stock market capitalization and stock market turnover and private sector loans of five indicators to measure the ratio of the level of financial development. Technological activities to internal expenditures per capita Technology and technological activities of these two patents granted per capita indicators as a proxy for technological progress, empirical analysis of financial development on the role of technological progress. And on this basis, the use of stochastic frontier analysis model-SFA model, empirical analysis of the financial development of technical efficiency change in the specific impact of.By inspection found that the financial development of the role of technological advances, reflected in the financial intermediary level of development of technological progress explanatory power is significantly negative, the stock market’s level of development of technological progress explanatory power is significantly positive for private sector loans and stock market turnover ratio to measure the level of the financing structure of the explanatory power of technological progress also significantly negative. As for the technical efficiency of financial development on the role of intermediaries and market are reflected in the efficiency of technology to promote or hinder the role, both on the technical efficiency of power had no significant effect.Concluded that, financial structure did not influence the technological progress, to some extent market-oriented strategy may not be able to finance development of a country’s technological innovation and economic growth boost. And financial development in developing countries raises an important policy implications, that is not only emphasizes the development of financial markets, but rather should focus on the goal of improving the operating efficiency of the financial system and strengthen the legal protection of the financial system, the system-building.Finally, this paper some suggestions of the financial system based on the empirical results.

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