The Study On The Measurement And Financial Support Of Industrial Transformation And Upgrading In Hunan Province

Abstract:Industrial economy is the leading force as the form of economic changing from extensive to intensive type. The upgrading and transforming of the industrial structure cannot be achieved without the support of financial department. Fully exerting the core function of financial development into deepening the transforming and upgrading of industrial structure is becoming the main subject. Based on the fact that the industrial transforming and upgrading is systematic, strategic and broad, this paper researches the measurement of industrial transforming and upgrading in Hunan Province. Then this paper mainly probes into the support that financial development gives to industrial transformation and upgrading, and conducts a Game Analysis on government, financial department and industrial enterprises and constructs a financial support platform for industrial transforming and upgrading.For the research object of this article, a brief review of the relevant theories of transformation and upgrading of industrial and financial support, as well as the existing successful experience summarized at home and abroad. Furthermore, from the industrial transformation and upgrading of financial demand and financial supply, interest subjects from three aspects of game analysis and affect the path of financial development to support the mechanism of action of industrial transformation and upgrading are analyzed in theory, empirical research lay the foundation for below.For the better quantitative analysis of the status quo of Hunan industrial transforming and upgrading, this paper establishes an index system according to the main content of the industrial transforming and upgrading. The system consists of eighteen underlying indexes and six rules referring to the industrial development, technological innovation, resource conservation, industrialization, information fusion etc. The group analytic hierarchy process and factor analysis are applied to weigh the comprehensive weigh and then the author constructs a way of measuring the development of industrial transforming and upgrading. This paper uses the comprehensive assigning method which combines the subjective with objective aspects. Hierarchical analytical method of group decision is applied in the subjective assigning method and factor analysis method is applied in the objective assigning method. This paper chooses six cities in Hunan Province:Changsha, Zhuzhou, Xiangtan, Yueyang, Hengyang and Changde as the objects and does some empirical research and evaluation about the status quo of Hunan industrial transforming and upgrading with the method mentioned above. The empirical result shows that the overall development of Hunan industrial transforming and upgrading during the year2005to2011is steady and there is no obvious improvement. The developments of the six cities are totally different.After measuring the level of Hunan industrial transforming and upgrading, this paper uses the sub layer IOD(Index of Development) of Hunan industrial transforming and upgrading as well as complex development index as the explained variable and the financial relative ratio, financial intermediary efficiency and financial structure as explaining variable and the index of financial development to study the Hunan financial development’s support to industrial transforming and upgrading with the page date model. The result indicates that financial development in Hunan remarkably supports the regional industrial transforming and upgrading and has different effect on each sub level. Especially, efficiency, structure, and scale passively affect the industrial transformation and upgrading. Financial scale has the greatest effect, then the financial structure and last, the financial efficiency. A point worth emphasizing is that this paper also applies systematic GMM assess and difference order GMM assess to prove the robustness of the result.To design a reasonable financial support system, through the questionnaire survey, using structural equation model of Hunan industrial transformation and upgrading the level of financial support factors affecting the empirical analysis. Among them, the financial support level is divided into financial products innovation, financial institutions to support the industrial transformation and upgrading, the financial system to support industrial transformation and upgrading ability three dimensions, the influence factors are divided into social environment, the financial structure and industrial three dimensions. Use small sample data collection and analysis, the initial questionnaire reliability analysis and validity analysis, and then get the revised final questionnaire. Through large-scale questionnaire survey, to constantly test and structure equation model, the empirical analysis of the Hunan industrial transformation and upgrading of the factors influencing the level of financial support. The research results show that the social environment, financial institutions and industrial factors are the main factors affecting financial support level. Among them, the factors that affect the level of financial support to financial institutions, the most significant social environment factor, industrial factor assume part of the impact of financial support levels were positively correlated. In addition, create a good social environment, improve the efficiency of financial institutions and industrial organization is the key to enhance the level of financial support.Fully drawing on the successful experience of the United States, Japan, South Korea, China’s Yangtze River Delta and Pearl River Delta at a similar stage, the paper builds a financial support platform which aims at enhancing the level and efficiency of Hunan industrial transforming and upgrading. The platform consists of five sub platforms—investment platform as its core, financial innovation platform as its impetus, financial regulation platform as its guarantee and the public service platform as its brace. Based on the empirical results above and successful experience, and from three perspectives-financial system, financial organization and financial environment, the paper proposes some suggestions including: firstly, improving the financial support system; secondly, exploring an effective combination of commercial finance with the policy-based finance; thirdly, optimizing the financial environment of Hunan industrial transforming and upgrading.