Financial Structure And Industrial Transformation Evidence From Shanxi

The financial sat at the heart of the allocation of resources in the modern market economy. The financial, as a kind of mobilize and configuration of special resources, plays a pivotal role in the process of gradual reform. For financial development, the growth of the total financial assets and financial structure adjustment have equal status. Financial structure in our country does not optimize the financial structure at the same time of the total financial expansion at present.This kind of phenomenon restricts the exertion of financial function and the promotion of the efficiency of financial. Shanxi Province as a typical resource-based region, is in a critical period of upgrading of the industrial structure and economic transformation. In order to realize the spanning development in Shanxi Province, there must be a stable and efficient financial system for support.This paper based on the reality background of the need of industry transformation in Shanxi Province, from the perspective of industry specialization and diversification, selecting data of financial structure, industrial specialization and diversification of Shanxi Province in 1993-2012, both from the overall financial structure and financial internal structure (financial institution structure, financial market structure, financial financing structure),using GMM method analyzed the contribution of the financial structure to industrial specialization and diversification. The results show that the total financial structure of Shanxi Province has inhibitory effect on industry specialization and promoting effect on industry diversification. In the financial internal structure, there is a u-shaped relationship between the financial institutions structure and industrial specialization, the ratio of non-bank financial institutions and banking concentration in Shanxi Province are less than the inflection point value, locating in the declining stage of the u-bend, having inhibitory effect on industry specialization. There is a inverted u-shaped relationship between the financial institutions structure and industrial diversification, the ratio of non-bank financial institutions and banking concentration in Shanxi Province are less than the inflection point value, locating in the rising stage of the inverted u-shaped curve, having promoting effect on industry diversification. The financial market structure has inhibitory effect on industry specialization and promoting effect on industry diversification. There is a u-shaped relationship between the financial financing structure and industrial specialization, the ratio of direct financing is far less than the inflection point value, having no obvious effect on industry specialization. There is an inverted u-shaped relationship between the financial financing structure and industrial diversification, the ratio of direct financing is also far less than the inflection point value, having no obvious effect on industry diversification. At last, according to the results of theoretical and empirical analysis, putting the adjustment of the contribution of the financial structure of Shanxi Province to industry specialization and diversification as a guide, evaluating the rationality of the financial structure of Shanxi Province and putting forward the countermeasures of optimizing the financial structure of Shanxi Province.The conclusion that the influence of the financial structure of the less developed resource-based region——Shanxi Province on industry specialization and diversification, has an important guiding significance on financial structure optimization and raising of the financial development level of Shanxi Province. This paper also provides a theoretical basis on how to make Shanxi financial play a supporting role better in the aspect of industrial transformation and the cultivation of the continuous industry, have great significance in theory and practice.