A Study on the Effect of Financial Development on the Upgrading of Industrial Structure in Zhejiang
|School||Zhejiang University of Finance|
|Keywords||financial development the upgrading of the industrial structure financial related ratio financial efficiency ratio|
Finance is the core of modern economic, financial development becomes the main aspects of the market economy. The upgrading of the industrial structure is the process of continuously optimize the distribution of resources, meanwhile resources optimization allocation is the basic function of modern finance. In this sense, the readjustment and upgrading of industrial structure can’t leave financial support. No matter the expansion of the advantage industry, or the traditional industry upgrading or smoothly exit, all need to have perfect and convenient financial services.After several decades of development of reform and opening up, Zhejiang economy has made good progress, at the same time also exposed many problems, there are many contradictions like low level of industry, weak competitiveness and innovative ability highlight. Most products are in the low end of industrial and value chain. So, Zhejiang economy is in the key period of transformation and upgrade at present, the upgrading of industrial structure adjustment is the most important in the economic transformation. How to play the financial function of support Zhejiang industrial upgrading has become an important issue.This paper first review relevant research results at home and abroad, using the relevant theory of industry economics and finance, combining the theoretical analysis and quantitative models to analysis the mechanism of financial development impact the upgrading of the industrial structure, and combined with Zhejiang industrial structure and financial development present situation, conducting empirical analysis to discuss the financial development how to influence the Zhejiang the upgrading of the industrial structure. Full text is divided into five parts:The first part is an introduction, explain the background and significant, the domestic and foreign research present situation, and the paper’s technical route and content framework. The second part we analysis the mechanism of the financial development influence the upgrading of the industrial structure, first analysis the process of the finance impact the upgrading of the industrial structure, through mechanisms like its capital formation, financial capital orientation, credit catalysis, spread risk to change the money supply level and configuration structure, so as to constantly promote industrial structure optimization and upgrading. In the third part we analysis the current situation of Zhejiang industrial structure and financial development. Through the study found that: when Zhejiang economy is rapidly developing, there many problems like industry structure unreasonable, weak independent innovative capability coexist; enterprise direct financing function is not strong in Zhejiang financial development, so that can’t meet the need of small and medium-size enterprise of capital. In the fourth part, based on the analysis in front, using quantitative models to analysis the mechanism of financial development impact the upgrading of the industrial structure, by constructing the time series which representative financial development and the upgrading of the industrial structure index, then using vector error correction model measurement analysis. Through the study found that: there is a long-term equilibrium relationship between the upgrading of the industrial structure and financial development, but both the long and short term relationship is not consistent, financial development index have positive correlation with the industrial structure index. Financial related ratio (FIR) impact the upgrading of the industrial structure index (ISR) is more than the influence of financial efficiency ratio (FER). Financial related ratio (FIR) and the upgrading of the industrial structure index (ISR) have tow-way causality, while financial efficiency ratio FER and ISR exist one-way causality. The last part, according to the problems that exist in the development of Zhejiang the upgrading of the industrial structure and finance, we make some suggestions about the way financial development promote the upgrading of the industrial structure in Zhejiang.