Financial structure and the growth of manufacturing industry - An Empirical Analysis Based on panel data model of manufacturing industry

This paper analyzes the mechanism of different financial structures on industrial growth from the perspective of industry heterogeneity, adopts a panel regression model, and uses data from 28 industrial industries above designated size in China from 2003 to 2015 to construct a benchmark model of financial structure affecting industrial growth. The intersection of financial structure and characteristics of different industries is added to empirically analyze the effect of financial structure on the growth of heterogeneous industries, and test the influence of financial structure on the growth of heterogeneous industries. The results of this study imply that China's current bank-led financial structure has significantly promoted the growth of the manufacturing industry, and direct financing led by the stock market has significantly restricted the growth of the manufacturing industry.