Research On The Effects Of Financial Development On The Upgrading Of Industrial Structure

With the rapid development of economic, unreasonable industrial structure is gradually emerging. Government in the "Eleventh Five-year Plan" clearly put forward to change the extensive mode of economic development, promote the upgrading of industrial structure.Rapid economic development of Anhui province at the same time, the industrial structure has been adjusted, from lower stage to higher stage of development, but compared with of the country and of the other five provinces of central region there is a gap. The government established the Little City with a transfer demonstration area in2010. The Little City not only close to the Yangtze River Delta, sound foundation for development, but also has the combination of the advantages of water resources, shoreline resources and environmental capacity. In this round of economic adjustment, the government will give more support in policies and funding, Anhui Province should take full advantage of this historic opportunity to accelerate the upgrading of industrial structure, to improve the level of development and comprehensive strength, and further enhance industrial radiation ability, to achieve leaping development, plays an engine and a strong leading role to promote sound and rapid development in Anhui and central part rising.At first, the paper reviews and summarizes the literature and research results on financial development and upgrading of industrial structure at home and abroad, on the basis of analysis of the role of financial development affects the upgrading of industrial structure:financialâ†'affect savings and investmentâ†'affect the flow of fundsâ†'affect the industrial structureâ†'affect the capital stock structure, and financial activities by influencing the allocation of funds, and thus the allocation of factors of production impact the final upgrading of industrial structure. Specifically, financial development change the allocation of the funds through the capital formation mechanism, oriented mechanism, credit catalytic mechanism, the mechanism of industry consolidation and risk compensation mechanism, thus promoting the upgrading of industrial structure. Second, on the one hand this paper reviews Anhui Province financial development and industrial structure of the development process in1984-2010years, specific analysis financial development status of Anhui Province from the three aspects of the scale of financial development, financial structure and financial efficiency, and compared with the country and the other five provinces of the central region, found some problems in the financial development in Anhui Province. Such as:the efficiency of financial development is relatively low; direct financing develop slowly. On the other hand the paper specific analysis the development status of Industrial structure of Anhui Province from the three major industries of the percentage of the GDP and the share of employment of staff of the three major industries two angles specific analysis and the other five provinces of the country and central contrast, found that the lower the level of the structure of the three major industries of Anhui Province, deviates from the value structure of the three major industries and employees in the lack of industrial development momentum problem. Then collected between1993-2010years of relevant historical data of Anhui province, choose financial interrelation ratio, financial structure and financial efficiency ratio of three indicators to measure the financial development, and selection of industrial structure optimization index represents the upgrading of the industrial structure, to measure financial development of the three indicators as explanatory variables, the optimization of industrial structure as explanatory variables, using multiple linear regression model, empirical study of the relationship between Anhui Province financial development and industrial structure upgrading. From the results of empirical analysis, the financial structure ratios and optimization of industrial structure does not exist a long-term equilibrium relationship, financial interrelation ratios, financial efficiency and optimization of industrial structure exist a long-term equilibrium relationship. Financial interrelation ratio influence on the upgrading of industrial structure is greater than the financial efficiency.Finally, in this based on empirical analysis, put forward to accelerate Anhui province financial development, and promote the upgrading of the industrial structure policy measures:to enhance the overall strength of the financial industry in Anhui province, to accelerate the development of local financial institutions, to speed up financial innovation, to enrich the level of capital market, give full play an active role of the financial industry on industrial structure upgrading.