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The Financial Analysis Of Industrial Structure Adjustment

Posted on:2005-07-11Degree:MasterType:Thesis
Country:ChinaCandidate:H L XuFull Text:PDF
GTID:2156360122999781Subject:Industrial Economics
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The economic development history indicate that financial development is more related to economic development. In theory, the earlier economist such as Hicks and Schumpeter mention the financial system's function in the course of development from the views of entrepreneur talent innovation and industrial revolution. From then on, Gold Smith research on the relation between financial structure and economic development, and Shaw and Mckinnnon stress the particular significance about financial deepening generate the developing country development. In empirical research, Ross Levine, the world bank economist, carry out much empirical research to prove whether financial factor promote the real economy development. At the same time, they analyze the difference between stock market and bank system's function of promoting development. In spite of disagreement about finance and development, the success of some developing countries such as Japan and Korea reveals the financial system accelerate economic development. Furthermore, financial system led to economy development by virtue of sector and enterprise. With the financial tendency in development, it is more obvious than ever that financial factors is helpful for the rationalization of industrial structure and industrial organization.The research about finance and industry development is not only a theoretical issue but also a practicing issue . it is so necessary for us to apply to the theoretical assay, but empirical assay is more important to testify the values of theoretical assay.The economy development comprise output growth and structure rationalization which is a crucial factor in maintaining long-term economy development. China is facing with the twofold task of transformation and development which make it more prominent for structure problem. As the core of modern market economy, the finance is not only the important mechanism for industry structure adjustment, but also is playing a active role in flowing and allocating resources among industrial sector and region. In theory , the course of finance's generating development is divided to three sub-mechanism: industry capital accumulating and conversion, industry capital allocating and industry capital amplification. A effective financial system is beneficial to risk trading, avoiding, disassembling, and is easy for market individual to get the information about investment and allocating which accelerate social capital mobilization, accumulating and converting to long-term industrial capital from scattered small capital. The valid price system of financial instrument inflecting real economy accurately promote finance capital's flowing and allocating among social sector and region. In the course of that allocating, direct and indirect finance playing a different role. In the early stage of development, the indirect finance has the advantage of concentrating and controlling resources to accomplishing economy overtaking task, but it is easy for the indirect finance to transform from financial controlling to financial repression which is adverse to allocating resources rationally. The direct finance could overcome in direct finance's shortages and is good at acceleration large-scale capital accumulation, whose all kings of financial product redound the markedly flowing and allocating of industrial capital in order to rationalize and sophisticate industry structure. In the selecting financial pattern to promoting industrial structure adjustment, the example of Japan and American provide us helpful experience and lessons. The government-oriented finance pattern is the most important factor in the process of industrialization, but become main barrier in adjustment industrial structure. However, American put practice to "the new ec0nomy" characterized by developing high-technology industry and get hold of the most competing advantages in the world again. With the economy globalization and the rapid development of information revolution, the reviving Northeast old industry base not only has the same character as p...
Keywords/Search Tags:Industrial
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