Study On The Financial Support In Industrial Structure Adjustment

This paper is to study financial support in industrial structure adjustment. Using economic analysis to explain the principle of financial supporting industrial structure adjustment and upgrade, this paper aims to get an insight of how to exert initiative of finance market to steer structure adjustment becoming more rational and scientific.With regard to the review and conclusion of literatures and researches in existence, the paper begins with effect of finance on industrial structure adjustment. Analysis shows that the chain effect of this principle is finance - saving and investment effect - capital flow structure effect - factor endowment distribution structure effect - industrial structure effect. Results indicate that more financial activities will make the transferring process more obvious and effect. Concretely, industrial structural upgrade will be promoted by three mechanism including capital forming, capital directing and crediting.Then analysis of choosing financial pattern is continued. Current financial patterns are classified to bank-leading and capital-leading ones, however, there are virtues and limits with both patterns, which should be realized adequately.The study on financial policy in industrial structure adjustment put emphasis on the view of choosing monetary policy. It creates relative perfect economy and finance circumstances that combining the monetary aggregate policy with structure policy, and realizing collaboration between monetary policy choice and efficient industrial structure adjustment. Aiming at the imbalance of economy developing and financial structure in different regions, the uniform monetary policy in China has varied social foundation and economic condition, especially the effect of policy regulation, because economy system and developing level determine the difference of economic fluctuation cycle in different regions. In addition, resident income, enterprise size, monetary degree of economy, economic capital absorbability and financial institution management and so on are the factors influencing the monetary policy efficiency. So, according to region financial character, reasonable choice of monetary policy mix is necessary to achieve balance of policyefficiency in different regions.The fourth part is an empirical study on financial support in industrial structure of Jiangsu Province. At first, observations indicate that Jiangsu is in secondary phase of industrialization as a whole with proportion of three industries added value is 9.7:45.6:44.7, referring to economic characteristic of Jiangsu and the relation between economy aggregate per capita and developing phases. Next, analysis of factors influencing industrial structure change in Jiangsu is used to show investment and financial support is relevant with industrial structure change. For example, credit input is positive to GDP growth, and capital market is essential to industrial economy development. At last, case study of Jiangsu Tieben is used to illustrate financial risks further in the industrial structure innovation. Without preparative industry joint, the regions with singular industrial structure are at risk of industry absenteeism, which leads to financial systematic risks in case of economy macroscopical regulations. So the importance of financial resources in industry selecting is put forward in the paper.Based on above analysis and conclusion, the last part suggest financial policies about Jiangsu industrial structure adjustment, such as exerting financial resource collocation to make industry scope suitable for it, quickening finance innovation, improving financial aggregate and strengthening Jiangsu finance industry by ranking finance as main industry and increasing its proportion of the third industry. Meanwhile, as for Jiangsu, it's necessary to cooperate with other trigonal regions near Changjiang River in finance so as to achieve reasonable resource collocation and industrial structure upgrade.