The Financial Structure and High-Tech Industries Development in China

The transformation of economic development approach demands to develop high-tech industries, while high-tech industries can’t develop without financial support, in which different financial structures exists differences in the efficiency of high-tech industries development and support. For this reason, this paper firstly theoretically described the mechanism of financial structure’s effect on high-tech industries, and then used principal component analysis with 1990 to 2007 economic data which constructed two financial structure factors, and places them in the same regression model with the rate of high-tech industries. It found that the relationships of both two factors and the rate of high-tech industries are positive, also for the one-way Granger-causality, but the total factor for one-way causality has larger impact relative to the structure factor. So this paper suggested that it’s necessary to focus on the total accumulation of financial assets and make full use of resources allocation and the positive role of high-tech industries in order to develop China’s high-tech industries.