| Since2009, facing with an extremely complex international and domesticsituation, Hunan province actively responded to the call of our country that is totake the scientific outlook on development as guidance, to accelerate transformationof the mode of Economic development,to Promote the optimization and upgrading ofindustrial structure and maintain stable regional economies growth. Meanwhile, thegovernment conscientiously implemented the positive fiscal policy and moderate easymonetary policy, to ensure the healthy and reasonable development of the financialsector. Nowadays, Hunan province is in the critical period of development,accelerating the financial development and promoting the upgrading of the industrialstructure is not only the key part of the project which is the Resource Saving andEnvironment-friendly society and new industrialization, Agricultural Modernization,new urbanization and information, But also the way to achieve sound and fastdevelopment of the economy and enhance of the competitiveness.Firstly, after reviewed and summarized the literature and research results onfinancial development and upgrading of industrial structure at home and abroad, thispaper analysis the relation between financial development and upgrading of industrialstructure. It is revealed that financial development will play a active role on theindustrial structure upgrade through the mechanism of capital formation, capitalallocation, credit, technological innovation and Industry consolidation. In turn, theupgrading of the industrial structure is bound to lead to changes in the financialstructure and upgrading of industrial technology will promote the new financialorganizations such as industrial investment fund, so as to change the existing financialsystem to promote the generation of financial innovation and enhance the ability toimprove financial management operations. All of these will have an effect on aregional financial development.Secondly, the paper reviews the development course and the present situation offinancial development and industrial structure upgrading in Hunan province from1988to2011. Three aspects: the scale of development, financial development andfinancial development efficiency are used to concretely analyze the current situationof financial development of Hunan Province and some problems are pointed out. Atthe same time, the output value of the three industries is to analyze the process of upgrading the industrial structure of Hunan province. It is founded that although theindustrial structure of Hunan province level enhances unceasingly, but the outputvalue structure and employment structure is still larger, with the gap between thecentral and eastern regions of the three major industries, the industrial structuredeparture from technical level is relatively low, problems in the development ofindustry development potential and emerging service industry lagging behind and soon.Thirdly, using the relevant economic data of1988-2011and relative indicators,the paper establishes econometric model to study the relationship between financialdevelopment and industrial structure upgrading. The result reveals that there is along-term stable relationship between the financial ratio, the efficiency of financialdevelopment and industrial structure optimization which exhibits financialdevelopment has a promoting effect on the upgrading of the industrial structure inHunan province and the effect on output value of the three industry is positive.Financial scale growth and financial efficiency help to improve and promote theoptimization and upgrading the industrial structure, but the optimization of theindustrial structure has no difference on financial growth and efficiency. Finally,based on the results, some suggestions are taken from the financial development andthe upgrading of the industrial structure combined with the actual situation in HunanProvince. |
