A Study On The Effect Of Financial Structure On The Industrial Structure Upgrading

Since the reform and opening up, the achievement of economic development in China has attracted worldwide attention. At the same time, the industrial structure has also changed a lot. And the development of the optimization and upgrading of the industrial structure is obvious.However, the industrial structure in China is unreasonable, which restrict the rapid growth of economy and the enhancement of overall economic strength, especially since the international financial crisis broke out in 2007, the structural contradictions brought by China’s traditional mode of economic development has become increasingly prominent. Speeding up the transformation of economic development mode and promoting the upgrading of industrial structure become a major strategic task in current and future period of time in China.Through savings and investment channels, finance can affect the flow structure of funds, thereby affecting the distribution structure of production factors, causing changes of capital stock structure among industries, and ultimately impacting the industrial structure. There are differences in financial services provided by different financial structures, optimizing and adjustment of financial structure can improve the conversion efficiency of savings to investment through various channels, thus to speed up the capital stock adjustment of various economic industrial sectors and to promote the optimization and upgrading of industrial structure. Therefore, under the background of our efforts to optimize the industrial structure, it is particularly urgent to accelerate the development of the financial industry, to adjust and optimize the financial structure and to provide a more favorable financial environment for the industry development.The paper connects the financial structure and industrial structure, analyses the mechanism of the impaction of the financial structure on the upgrading of the industrial structure theoretically, investigates on the current status of the development of China’s financial structure and industrial structure, studies on the correlation between the financial structure and industrial structure in the national and regional levels, analyses the problems and defects existing in the financial structure, and puts forward the ideas and approaches of the adjustment of financial structure in China in the lights of promotion of the upgrading of the industrial structure.Firstly, the paper analyses the internal mechanism of the effect of the financial structure on the upgrading of the industrial structure theoretically and discovers that various functions of the financial system can be effected by the adjustment of financial structure, that is, through the mechanisms of capital accumulation, technology progress and resource allocation to impact on the upgrading of the industrial structure. Meanwhile, the paper constructs the mathematical model of the relationship between the financial structure and the upgrade of the industrial structure and derives the relationship between the two sides and its impact on economic development and financial development theoretically.Secondly, from different point of view, the paper studies on the present situations of China’s financial structure, industrial structure and upgrading path through the analysis of a large number of statistical data. Overall, China’s financial structure, financial institution structure and regional distribution structure of financial resources show changes adapted to economic development. In the three industries, the second industry has gradually become the dominant industry, and the tertiary industry shows the trend of rapid development.Thirdly, the paper analyses empirically the impact of the financial structure on the upgrading of industrial structure from the national level. Results show that: in general, the certain influence of the funding structure, financial institution structure and regional distribution structure are exist, but it shows different influence on the non-agricultural industry and the tertiary industry, in which the funding structure of financial structure and the market structure of banking institutions have significant negative influence on the upgrading of the industrial structure.Fourthly, the paper analyzes the influence of financial structure on the upgrading of the industrial structure from the regional level. On the one hand, the paper makes an empirical test on the relationship between the financial structures of the three major areas and the upgrading of China’s industrial structure, the certain influence that the financial structure of each area has on the upgrading of our country has been proved. On the other hand, the paper makes empirical analysis on the relationship between the financial structure of each respective region and the regional industrial structure upgrading, results show that there are significant differences in the effects of the financial structure of each respective region on the upgrading of local industrial structure, the impact in the eastern region is the greatest, in the central area is greater, in the western region is not obvious.Finally, the paper puts forward idea on the improving of the financial structure to promote the upgrading of industrial structure, and carries on the summary and prospect of the research.