Study On Impact Of Finance Structure On Industrial Structure

The evolvement of industry structure is the result of capital allocation. finance is the core of modern economic, the core function of finance system is capital allocation. Based on the relationship between structure and function in the theory of system. The finance function lie on the finance structure, accordingly, there is a conjunction between the finance system structure and Industry structure in modern economic development. Based on the summing-up correlative fruit of former researchers, this paper establish a theory frame in different institutional environment, by the theory frame, this paper analyse the impact of the finance system structure on Industry structure from three dimensionalities include finance mode structure, credit ownership structure and credit market structure. In the condition of market economic the impact of financing mode structure to Industry structure, mainly resultingly the different financing mode adapt to the different industry technology. indirect financing in favor of the development of tradition industry, direct financing in favor of the development of new industry. Enhance the proportion of direct financing mode can boost Industry structure upgrade. In bank-based country, allocation of credit captail namely credit ownership structure and credit market structure deciding the structure of captail allcotion of the whole society in deep degree. credit ownership structure match the ownership structure of national economic and credit market structure match the sale structure of enterprise is propitious to industry structure upgrade, but in institutional environment of government control the captail allocation, the impact of finance structure on industry structure will be restricted.This paper empirically tests the relations between the change of capital allocation mode structure, credit ownership structure, credit market structure and industrial structure in china. The empirical study results show that there is no long-term cointegration relationship between stock allocation mode structure and industry structure in china, There is a cointegration and positive correlation relationship between national debt allocation mode structure and secondly industry,and the change of national debt structure is the Granger causality of the change of second industry. There is no cointegration relationship between enterprise debt allocation mode structure and industry structure in china.there is only a cointegration relationship between credit ownership structure and second industry structure in china and they are negative correlation relationship, and the change of credit ownership structure is the Granger causality of the change of second industry. there is only a cointegration relationship between credit market structure and first industry structure in china and they are positive correlation relationship, and the change of credit market structure is the Granger causality of the change of second industry.in conclusion, there is no observably impact of Chinese finance structure on the industry structure upgrade because the unbalance finance structure and institutional environment of government control the captail allocation,the will weaken or disappear.Finally, this paper Propose some policy think including boost stock market, make great efforts to enterprise bond market, boost national debt, boost state bank property right reform,build small-medium bank and encourage innovation of finance technology.