An Empirical Study Of Financial Development And Industrial Structure Upgrade In China

Finance is the core of modern economy. The upgrading of industrial structure is an important symbol of economic development and objectively reflect. Is the important factor in the impact of further economic development. In the economic development process of China. Our financial development and economic development are faced with the problem big but not strong. Optimize the industrial structure and to promote industrial upgrading. Is the only way our country’s healthy economic development and enhance competitiveness. Capital is the direct driving force to ensure that the adjustment of industrial structure and promote industrial upgrading. With the improvement of our country’s market economy. Investment patterns of our society as a whole has been through the past financial-led transition to the financial-oriented. How to play the role of financial in resource allocation. Promote the upgrading of industrial structure And promote economic development. It is an important issue that we face. Based on this. We use relevant data to do the empirical analysis and the results are as follows:Financial development to support the optimization and upgrading of industrial structure. But presence Significant time difference. The establishment of capital market and optimize the allocation of resources. Promote the upgrading of industrial structure. On the contrary. Our country’s rural finance and rural industrial restructuring uncoordinated.1.Basic conclusion in the thesis(1) Financial development to support the optimization and upgrading of industrial structure. But presence Significant time difference. In the long term, Financial development affects the upgrading of industrial structure has a significant positive effect. With our financial development. Promote the capital in different areas of effective flow and economic resources between different departments transfer orderly. To achieve the optimization and upgrading of industrial structure. But comparing the before and after the economic transformation. After economic transition. Finance on industrial promotion effect is strengthened apparently. This is mainly because before the economic transition. By the influence of planned economy system,all kinds of suppression and distortion. Finance can not effectively play the role in resource allocation and structural adjustment. After the economic transition, With the establishment and improvement of the market economy system. Financial re-played the capital formation and guidance function. Improved the efficiency of the allocation of financial resources. Promote the upgrading of industrial structure.(2) The establishment of capital market and optimize the allocation of resources. Promote the upgrading of industrial structure.With the establishment and development of our capital market especially the stock market. It play an important role in the industrial upgrading. Provides the necessary funds for industrial upgrading. To achieve the resource inside whole society limits and reasonable configuration. Promote the adjustment and optimization of industrial structure.(3) Our country’s rural finance and rural industrial restructuring uncoordinated. The adjustment of rural industry structure optimization need for substantial capital investment. Capital investments and configuration needs financial support. If we ignore the agriculture industrial structure optimization of financial support. Its structural adjustment will not be successful. The backward rural financial can not meet the farmers’basic production and living demand for credit. The majority of the rural areas is almost enjoy less policy-oriented financial services. While the formal financial service supply can not meet demand. Led farmers to seek loans at high interest rates of private financial. Stimulate the development of the rural folk financial. These have led to the rural industry in the process of adjustment of the shortage of financial support.2. Some Proposals Put forward in the thesis(1) Enhance the financial comprehensive strength. Firstly. Improve the overall level of financial industry. Accelerate the reform of financial institutions. Enhance the overall strength of financial institutions. Promote industry upgrade and optimization. On the other hand. Promote financial enterprises to speed up the establishment of modern enterprise system. Improve the corporate governance structure. Secondly, Improving the financial market system. Increase the share of non-state components in the financial system. Break state-owned economy component in the financial industry monopoly. Lastly. Improve the efficiency of financial institutions. Increase the intensity of the economic reform. Provide adequate funding to Non-state-owned economy. Give full play to the tremendous impetus of China’s economic growth of non-state economy.(2) Speeding up the construction of capital market, Broaden the financing channel of industrial upgrading. Firstly. Expanding the overall size of the capital market actively. Reform the existing listed companies system. Actively guide the ability of residents and enterprises to enter the capital market. Attract foreign investors to enter the domestic capital market for long-term investment. Expand the industrial structure optimization and the scale of funds required for the upgrade, secondly, Use capital market to implement enterprise reorganization. Speed up the upgrading of industrial structure. Establish the withdrawal mechanism of listed company as soon as possible. To promote industrial upgrading the industrial structure. Lastly, The establishment of a multi-level capital market system. Meet different levels of industrial restructuring needs.(3) Improving the financial support to agriculture system, Promote agricultural industry to upgrade. Firstly, Adhere to the correct principle and target of the reform. Pay attention to the use of legal means. To encourage financial innovation. Strengthen the credit system of rural financial reform should adhere to the principle. Secondly. Taking protect the farmers’basic production and living needs and enhance capacity for sustainable development as the starting point. To expand the business scope of the Agricultural Development Bank. Increase the policy of financial services coverage. Thirdly, Establish a multi-level, developed, standardized cooperative financial system. Increase the support of the cooperative financial organization, and protection efforts. Deepening the reform of rural credit cooperatives. Lastly. Norms, and protect the development of private financial. Give full play to the private financial support for agriculture.