The Effect Of Financial Development On The Upgrading Of Industrial Structure In Anhui Province

Finance is the core of the modern economy. The adjustment, upgrading and transformation of industrial structure also depend on the support and development of finance. Anhui economy is experiencing the key period. Optimizing industrial structure, driving the upgrading of the industrial structure is the only way to develop Anhui economy faster and better and promote its competitiveness. It is an important subject to analyze how the finance supports Anhui industrial upgrading and drives its economy development.This paper will take the financial support to industrial structure upgrading as object, try to make a systematical analysis of how to make the industrial structure adjustment more rational and scientific through bringing into play financial market's activity in its resources distribution and the financial policy's micro-adjustment. This paper also gives an empirical research to the financial support for the upgrading of industrial structure. The paper process and conclusion is as follows:1. Analyzing the principle that finance influences the industrial structure from the perspective of theory. On the basis of analyzing the process of finance influencing industrial structure adjustment, it has been found that finance changes the capital supply and distribution structure and promotes the industrial structure upgrading through the forming, orienting and credit catalyzing mechanism. It has been discussed that the promotion of financial organization is an important way to develop finance, also is indispensable to the upgrading of industrial structure and economy development. And the support from financial markets to industrial upgrading is also analyzed in details.2. Analyzing the current situation of industrial structure adjustment and the corresponding financial development situation in details. Through the analysis, we have found the problems such as low level of industrial structure, the low proportion of the second and third industry, slow development of industrial structure technical level and lack of power in industrial development. Due to the insufficiency in financial volume, underdevelopment of capital market and low proportion in direct financing, the source of industrial capital mainly comes from the bank credit markets.3. Empirically researching the support to industrial upgrading from Anhui financial development. The paper reveals that great contributions to the industrial upgrading have been made by the indirect financing which is represented by the bank credit, while few contributions have been made by the direct investment which is represented by stock markets. Besides, great contributions also have been made by bank credit to support the development of the high-tech industry instead of the stock markets. The result of empirical research further proves the conclusion reached in the previous theoretical analysis.4. Putting forward the suggestions to further bring into play the support of Anhui industrial upgrading from finance. In terms of Anhui industrial upgrading and financial development, it has been suggested that financial development level should be upgraded and the financial support to Anhui industrial upgrading should be brought into play from the perspective of increasing financial strength, developing regional financial organization, developing capital market, driving financial innovation and optimizing financial development environment.