Fiscal Policy Of Industrial Structure's Upgrading In Undeveloped Areas

Whether the industrial structure of a region is good or not is an important symbol of a regional economic development in quality and level, which decides the potential of the region's future economic development. Because of the industrial backwardness and unreasonable situation, the gap between the undeveloped areas and the developed areas showed a growing trend In the process of economic development. At the same time, it causes serious environmental and ecological damage in undeveloped areas, which impacts directly the sustainable development of underdeveloped areas. Therefore, the promotion of the industrial structure's upgrading becomes important particularly in underdeveloped areas.Fiscal policy is an effective means to adjust the economic total amount and structure in the market. It is given praise by regional economist. Especially for underdeveloped areas, the government's support is essential. Under the Chinese marketable system, how to arrange the government's role, make up effective fiscal policy and stimulate the development of underdeveloped areas are worth to be studied deeply.This paper, theory dialysis about the industrial structure's upgrading in undeveloped areas firstly. It puts forward the concept of undeveloped areas and discusses the basic theory about the industrial structures' upgrading and points out the need of the industrial structure's upgrading in undeveloped areas. Secondly, it talks about the present situation and problems of industrial structure through numbers and diagrams. Thirdly, it analyzes the stage and fiscal policy of the industrial structure's upgrading in typical developed countries. On basis of this, it summarizes up the experiences. Fourth, three constructive regional development policies are designed attaching to the industrial structure's upgrading: First, through the integration and technologic improvement, traditional industries achieve the aim of upgrading. Then, the development of high-tech industries. Finally, the development of industrial clusters. In the end, the paper points out that finance should how to do to promote the upgrading. It comes to some important fiscal policies: fiscal policies of developing high-tech industries, fiscal policies of developing industrial clusters, fiscal policies of investing in manpower capital, fiscal policies of optimizing investment environment.