Financial Support In The Adjustment Of Industrial Structure

This paper purports a deep research on the basic principles and mechanism of financial support in the process of industrial structure adjustment, using theories as Industrial Economics and Finance. And then this paper analyzes comparatively the financial systems in US, Japan and German. Subsequently, it goes deeply into the practice of finance working on the industrial structure in China. Finally, it gives related advice after putting forward the main characteristics and problems in this process.The article consists of seven chapters besides the introduction and the conclusion. The introduction illustrates the significance of the subject, the research trains of thought and the research methodology.The chapter 1, 2 and 3 construct the theoretical frame of the thesis. The first chapter narrates some theories about industrial structure adjustment, such as the theory on industrial division, industrial distribution, and structure evolvement, structure adjustment and etc..The second chapter provides a summary of former scholars'research on finance support in the adjustment of industrial structure. In Capital, Marx figured it inevitable that financial resources participated in the recycle of industrial capital in large-scale socialized production. The traditional economy theories, such as the monetary theory of Keynes, Friedman and Harrod-Domar Growth Model, discussed the role of finance in economy growth from different aspects. In addition, the dispute between Finance Deepening Theory and Finance Restrain Theory is what government should do in the financial development. The theory of modern financial development studies how the financial structure works on the industrial structure by researching on the evolvement of financial institutions and financial markets.The third chapter explores the mechanisms and mode of financial support in the adjustment of industrial structure. Financial system influences reserve and investment, which will impact on the capital flow, then on the allocation of resources, and finally on the capital stock. As a result, the industrial structure is adjusted. In this process, financial system supports the structure adjustment in the way of capital forming, capital directing, credit prompting, industrial conformity and risk diversification. The financial mode can be divided into demand-following and supply-leading, which has varied effects in different stages of economy growth. In real economy development, a...