The Research Of Industrial And Financial Combination To Industrial Upgrading

Since the reform and opening-up policy, financial competition has become seriouswith the high development of our country’s industry.The trend, which the capital ofindustry enter into the financial institution, or some enterprises build their own financialcompanies,has accelerated severely. Obviously, financial-industrial combination is anunavoidable phenomenon ender this circustance.There are some debates about the effects of financial-industrial combination in TheoryCircle. GE(General Electronic),the most successful example of combining industry andfinance,has ever been recognized as only a great deal of financial foam by XianpingLang. However, Ruimin Zhang has ever pointed out: No matter how hard, we shouldbuild the relationship between industry and finance to reach the final goal which industryand finance are equal in percentage. We expect a new route in spite of high risk of enteringinto financial district. In terms of improving our country’s competition, choosing suitablefinancial-industrial combination mode to make international large enterprise is a newchallenge we face in21th century. On the other hand, based on controlling market, thetrend not only can cultivate the core competition of enterprises but also be benefit toenlarge the scale.Under a VAR modeling framework, this dissertation used Grange（rnon）Causality test,Johansen and EG cointergation test,and innovation accounting analysis approach tocapture the dynamic relationship among the financial-industrial combination, industrialupgrading and financial structure during the period1992—2010. The author choose somevalued provinces in accordance with the distribution of The Merchandise Bank of China toresearch, which can promise the high level of industry and finance. The added value of thesecondary and tertiary industry divided by GDP is YHV, which can describe the degree ofindustrial upgrading excellently. From the research, we conclude that even though thesecondary industry is still the most important nowadays, the appearance of the industry istransferring from "second,third,first" to "third,second,first".Financial structure indexescan be divided into financial substitution structure、financial market structure、financialassert structure. Although the major trend of financial structure is good, the processfluctuates as with the intervention of government. The main conclusions are presented asfollows：Firstly, the industrial and financial combination is just in the first stage and don’t have Granger cause with industrial upgrading in short run, while in long run theequilibrium relationship between them exits weakly. Secondly, the industrial and financialcombination do Granger cause the financial structure obviously, that is, deepercombination has contributed to financial structure, as well as in the long runs.