Research on the Relation between Financial Development and Industrial Upgrading
|Keywords||financial development industrial upgrading Jiangsu province|
Economy is the foundation of finance while finance is the core of economy. The relationship between financial development and economic growth has always been one of the key areas of research on economics. Economic growth should be the growth with quality which means its mode should be transformed from extensive growth of low added value to intensive growth of high added value. Among which, the upgrading of industrial structure is the core. The industrial upgrading is modernization of industrial structure. In other words, it is a transforming process of industry from low-leveled and low added-value status to high-leveled and high added-value status, in which there will be accompanied by the adjustment of resource allocation. No matter it is stock configuration or incremental configuration, financial support is needed.Through thirty years’development since reform and opening-up, the economic output of Jiangsu Province has been at the top of nation. Optimization industrial structure and driving the upgrading of industrial structure is an important part of the sustained rapid economic development of Jiangsu Province. The main task of this paper is to study the impact of financial development on industrial upgrading of Jiangsu Province and how to exert the active role of finance to support industrial upgrading.The paper makes an empirical analysis of the relationship between finance development and industrial upgrading in Jiangsu on the basis of theoretical analysis of the impact mechanism of finance on industrial structure, which from the aspects of the total finance development scale,financing structure,degree of financial marketization and opening-up.The conclusion confirms that financial development in Jiangsu has promotes industrial upgrading positively;meanwhile,the promotion effect still needs to be enforced.Then,the paper analyzes the reason from the prospective of self-relevant factors of financial system, other influenced factors of industrial structure upgrading and imbalanced region development within Jiangsu Province, and puts up with the corresponding policy advice.