A Study On The Impact On Financial Development To Industrial Transportion Of Anhui Province

As Chinese economy enters the transition period, the pressure to industrial transition and upgrading is great. As an important province in the middle district of China, Anhui has made a series of regulations to restructuring, increasing efficiency and stabilizing growth in industry. The progress and effect of industrial transition and upgrading are relevant to the effect of finance supporting real economy. Based on a host of troubles that Chinese industrial economy faced and China’s financial development, support policies in the current period of economic transition, the study makes an analysis and argumentation from the perspective that finance should support real economy. First, based on theoretical analysis, the study has selected several developed countries as cases and summarized the policies that developed countries made to support industrial development, thus revelations for China can be concluded. After the economic crisis in 2008,countries like America, Germany, Japan constantly makes transformation in industrial economy area in order to get rid of the economic crisis. For instance, the untied states pushes the technological change represented by shale oil and biotechnology; Germany has put forward the plan of 4.0 in industry, thus further promoted the industrial technicalization and informatization in industry. In such the process of industry transformation and promotion, finance plays an important role and greatly enhance the effort of industrial transformation. Second, the study analysis the level of industrial transformation in Anhui province from 4 areas, such as green transformation, transformation of science and technology. Industrial transformation in Anhui province has obvious effect with macro economic cycle convergence and weak ability to resist external shocks. Based on the analysis of the industrial transformation effect in Anhui province, the article establishes the VEC model, analysis the effect of financial development and industrial transformation in Anhui province, and gets the conclusion. The expansion and optimization of financial structure can effectively improve the effect of industrial transformation. At last, the study proposes suggestions to speed up the financial development in order to improve the efficiency of industrial transformation, including speeding up the development of Chinese capital market, perfecting the construction of stock market; increasing policy-based finance support.In detail, the study are as follows:Chapter One, the introduction part. an introduction to the research background, from two aspects, theory and practice to interpret research significance of the study. Further more, the existed research results both at home and abroad are briefly reviewed in this paper, and then the research scope of this article is determined. Finally, the introduction to the basic research idea of this article, the main research contents and research methods. Chapter Two, theories on financial development Supporting industrial transformation and upgrading, including review to the relevant theories of the industrial transformation and upgrading,analysis of financial support to the effects of industrial transformation and upgrading mechanism from the Angle of financial demand and financial supply in the period of industrial transformation and upgrading,advanced experience of financial development to promote industrial transformation, such as America, Japan and Germany in foreign countries; Jiangsu and Guangdong provinces in domestic. Chapter Three, first, the measurement and calculation to the effects of industrial transformation and upgrading in Anhui province by means of principal component analysis(PCA).Second, a hypothesis in terms of industrial transformation mechanism, then the scale, structure and efficiency are weighted by financial interrelations ratio(FIR),store conversion, industrial loan percent. Third, the VEC model is build to empirically study on the influence of financial development toward industrial transformation in Anhui province. Chapter Fifth, suggestions of Anhui industrial transformation and upgrading with the support of financial. Including, accelerate the pace of financial innovation, strengthen policy financial support, optimize the financial environment.