Research On The Relation Between Financial Development And Industrial Restructuring

Economy development is not only reflected as the growth of the total amount, but also the rationalization and up-grading of industrial structure. A great deal of practice indicates that economy growth is unable to be sustainable if the system of producing technique can't be raised and the industrial structure can't be improved in the process of economy growth, The improvement of industrial structure is the process as well as the result of economy development. However, due to the slowness of spontaneous industrial restructuring, some industry policies should be carried out to promote the industrial restructuring by artificial intervention, and financial policy is one of the most important assistant policies.Finance is the circulation of the capital and the core of modern economy. As the most important economic resource, finance decides the movement direction and size of the economy elements, and the corresponding output of enterprise and industry and the proportion among GDP. By this way, the purpose of industrial restructuring will be attained. This paper is to study the support mechanism of finance to industrial structure by applying knowledge of industrial economics, finance and macroeconomics etc. to illustrate theoretically the function mechanism. It can be simply expressed as the following: Finance effects savings and investment; then savings and investment effect the flow structure of capital; then the flow structure of capital effects the structure of producing element collocation; then the structure of producing element collocation effects the structure of capital storage; then capital storage effects industrial structure.The understanding and mastery of theory is helpful to solve practical problems. But our present mode of economy development does not make economy further development any more. It costs too much resource, and makes serious pollutions and wastes, which has been a prominent problem in economy growth. The 16^th National Congress of The Communist Party of China (16^th NCCPC) has explicitly proposed that we should change the way of economy growth, speed up industrial restructuring and accelerate technological innovation as the "bottleneck" of breakthrough of economy development to realize the sustainable growth. In addition, research on the relation between financial development and industrial structure is helpful to the theoretical research of the finance and industrial economics. Therefore, the study is extremely important. It has not only an academic significance but also a practical significance.According to the overseas successful experience and domestic situation in china, The essay considers that if we want to enhance the influence of finance support to industrial restructuring, we should carry out reasonable financial model and financial policies. At present, we must implement the following three kinds of financial models in China: implementing financial development model of supply guidance; implementing bank-dominance model primarily and capital market auxiliarily; implementing market-dominance finance model primarily and government-dominance finance model auxiliarily. If these models are matched by necessary financial policies, it certainly can accelerate the industrial structuring and the optimized promotion.