Abstract:

Based on President Xi Jinping’s important discussions on Chinese modernization, a statistical indicator system for Chinese modernization has been constructed. A spatial autoregressive model is employed to analyze the impact of the ratio of financial industry value added to GDP on Chinese modernization from 2004 to 2022. The findings reveal that: (1) there is a significant inverted U-shaped curve relationship between the ratio of financial industry value added to GDP and Chinese modernization; (2) the optimal ratio of financial industry value added to GDP from 2004 to 2022 is 5.2%, while in the stage of high-quality economic development (after 2017), the optimal ratio increases to 5.5%. This indicates that maintaining a ratio of 5.5% for financial industry value added to GDP is most conducive to Chinese modernization during the high-quality economic development phase (after 2017). From the perspective of Chinese modernization, China should moderately reduce the ratio of financial industry value added to GDP.

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