The Impact Of Yangtze River Delta Area Financial Structure On Industry Cluster

Ever since the reform and opening, China's economy has achieved remarkable results as it enlarges its field of opening and improves its investment. The eastern coastal regions, especially the level of the Yangtze River Delta region's economic growth has even multiplied geometrically. So what are the decisive factors that make Yangtze Delta develop so fast. Apart from its advantage in infrastructure, industry foundation, labor force and government policies, we find that there also exist considerable industry clusters, especially that in manufacturing.The formation of these clusters, however, depend on the external environments, especially on the needs of capital and requirements of financial structure. The financial structure of one country is produced in its factor endowment structure and industry technology structure. The Financial structure will change depand on the change of the factor endowment structure and industry technology structure to adapt to the financing needs of different industries and enterprises. At present, China's financial structure and financial system have the problem of a single financing structure, too much concentration on institutional structure, competitive regional financial market structure has not yet formed and so on. Therefore, under the background of financial-system reform and economic growth mode transformation, the research on the active effect of financial structure on industry clusters, which is useful for financial system to fasten the step of reformation of financial system, and improving the financing environment.The main contents of this paper as follows:In the first part, the paper has a simple introduction about its research background, method and frame. In the second part, we use indictors of bank-concentration and financing structure to describe the state of Yangtze Delta's financial structure, and use indictors of LQ and CR to describe the state of Yangtze Delta's industry cluster. In the third part, we analyze the definition of financial structure and industry cluster,, and the micro-mechanism of Financial structure to promote industry clusters. Then, we find the influences of different financial structures to the development of industry clusters by analyzing the panel datas from the year of 2000 to 2007 in 16 cities of Yangtze Delta. Conclusions as that:The structure of loan has significant positive effect to the Industry Cluster, while the structure of banking and financing has negative effect.Finally, this paper will give some constructive countermeasures and suggestions to optimize the regional financial architecture and to facilitate the healthy development of industry clusters in Yangtze Delta.