| Finance plays a crucial role to create money and capital, increasing higher saving level of investment in the modern market-oriented economy, and it can improve the efficiency of resource allocation, playing an extremely important role in the development of Hunan economy. Finance is the blood of the modern economy, it’s the hub of the economic community. Finance creates a channel for the flows of funds from departments of surpluses to departments of shortages, it is an economic booster by reducing information asymmetry and transaction costs. The industrial restructure is the configuration process of economic resources, which is the basic function of financial market. Finance plays a different role in promoting the industrial structure. Finance determines what kind of relationship they have. Under normal circumstances, it can be conducive, but sometimes it can create a restraining effect.The purpose of this article is to find out the causal relationship between them, so that some policy recommendations can be proposed. This article uses a comparative analysis methods and tools of econometrics based on the actual principle and the existing theory. The basic framework of this paper is as follows: Chapter1:Introduction, This part briefly introduces the background, purpose, significance and methods of this topic, as well as some innovations and inadequacies of this paper; Chapter2:This part introduces Theory and Literature Review. The theoretical part of the financial development includes the background, content, and the advantages and disadvantages of the four representative theories of financial structure, financial deepening, financial constraints and financial function, and defines the performance and metrics of financial development from three different aspects; The theoretical part of industrial structure mainly elaborates the conception, connotation and some representative theories of industrial structure. And also discusses the relationship between financial development and industrial structure from different aspects; Chapter3:This part introduces the present situation of financial development and industrial structure in Hunan Province. The financial development part includes the current trend of financial development in Hunan, and describes financial developments in Hunan from three basic financial industries:banking, securities and insurance sectors.and analyzes the basic characteristics of financial development from several angles:the speed of financial development, financial ratios, the growth rate of deposits and loans, direct and indirect financing ratio and financial added value, compared with other central provinces and the country. Situation from financial assets and financial value added and Central the provinces and the country; the industrial structure part includes the analysis of industrial structure from the aspects of industrial output and employment, compared with other central provinces and the country; Chapter4:This part is about the empirical analysis in Hunan Province; it is the focus of this paper including variable selection, data sources, model building, model estimation, multiple regression models, etc. And the empirical conclusion of this chapter; Chapter5:This part is about the summary and policy recommendations in Hunan Province, which is also the focus of this article. This part first summarizes the first few chapters of this paper, and proposed some advises based on the chapter4.Hunan regional economy started to bloom with the proposition of China’s "market-oriented economy" and "Rise of Central China" strategy, and the investment pattern of Hunan province has transformed from the past fiscal-oriented to financial-oriented. Financial development plays an active role in the flow of resources between various industries, sectors and regions, and it is quite important to expand the financial scale, and the competition of financial resources is becoming the main competition of local government, this kind of competition focuses on the expansion of financial quantity. In order to ensure the financial function of allocating funds and promoting industrial restructure to create a healthy economic environment.The empirical analysis in Hunan Province has a certain theoretical and practical significance. It is quite rare to make a specific analysis like that, and the industrial structure promoting is regarded as a measure of the quality of economic development worldwide, while finance helps the industrial structure promoting to succeed. Therefore, the empirical analysis of Hunan province provides a valuable reference in making a economic policy.In addition, the comparative analysis of Hunan Province and the central region provinces has a reference value for the evaluation of Hunan and other provinces of central China.The innovations of this paper includes:This article is rare because most of the researches only focused on the macroeconomic and microeconomic level; This article made a comparison with other central provinces and the nation; This article provides a theoretical strategy of how to promote financial and industrial restructuring and upgrading by the co-integration analysis and vector error correction model. |
