Financial Support Research In Industrial Structure Adjustment Of Hunan Province

Since reform and opening up, he Hunan Province’s economic has kept rapiddevelopment, but there is still a big gap compared with the more developed provinces.The industrial structure of Hunan Province becomes not very rational, the overalllevel is backward in the country, it is seriously restricting the economic sustainablehighly growth. Finance is an important factor affecting the adjustment of industrialstructure, in order to achieve the “four modernizations and two types” strategic,Hunan Province needs to increase the financial support and guide the direction offinancial support and innovate the ways of financial services to promote theadjustment of industrial structure optimization.Firstly, reviewing the theory of financial support for industrial structureadjustment.Then analyzes the development status of the financial development andindustrial structure of Hunan Province, as well as the adjustment of industrialstructure of financial support at now, concluded that: The financial support for theprimary industry is mainly concentrated in small businesses, and the support is veryshortage; The financial support for the secondary industry is mainly concentrated intraditional industries, a number of high-tech innovation, high-risk, small business isdifficult to get strong financial support; the tertiary industry receives the most supportof the financial,it mainly concentrated in the transportation, storage and postalservices as well as real estate, but the high value-added service is very lack of thefinancial support. Thirdly, using the data for the years1978-2012in Hunan Provinceto establish econometric models, by means of empirical study on the relationshipbetween the industrial structure adjustment and financial development in HunanProvince, the conclusion shows that: The industrial structure and the total amount offinancial development is positively correlated,but The industrial structure and theefficiency of financial development that the loan-to-deposit ratio was negativelycorrelated, which means that increasing financial support amount can promote theadjustment of industrial structure, but needing to improve the direction of financialsupport, such as strengthen the financial support of the industrialization of agriculture,high-tech innovation SMEs. Finally, according to the theoretical analysis andempirical study, we give a brief summary and three proposal for financial policysupport promoting the adjustment of industrial structure, the proposal as follows:Speeding up the construction of credit system, to improve the financial environment;innovating financial services to promote the development of strategic emergingindustries; increasing agricultural financial support and promoting theindustrialization of agriculture.In this paper, by researching on financial support of industrial structureadjustment in Hunan Province, which is not only with strong practical significance inHunan Province, but also with certain theory value about understanding therelationship between finance and economic development from the industrial structureaspect.