A Study Of The Financial Background About The Upgrading Of The Industrial Structure In The Pan Yangtze River Delta

Finance is the core of economic development. The history of modern economic development shows that economic development accompany with the industry structure upgrade. In the progress of the adjustment,finance plays an important role.It not only provides a lot of the funds,but optimizes the financing mode structure. Because Pan-Yangtze Delta has the huge potential in the economic development,there is high theretical value to research how to influence the industry structure upgrade by finance development. Additionally,by this paper, we can make full use of the capital allocation function of finance to heip the optimization of industry structure.In order to analyze how finance affect the adjustment of industry structure,firstly we use financial development theory and industry structure theory to research interactive mechanisms of finance development and industry structure adjustment. At the base of theoretical analysis,we selects the related data between 1978-2010 as research samples in the Pan-Yangtze Delta.We analyze the difference in the finance development and industry structure and find that although AnHui and JiangXi have the high development speed,finance and industry structure's optimization are still in a backward position.Then we use cointegration analysis, Granger causality test model and Vector Error Correction Models(VECM) to research these data.The conclusion shows that finance development can promote industry structure adjustment for the Pan-Yangtze Delta.The development of capital market also produces the positive function,but AnHui has extraordinary situation.Debt is the most important financing channel for a lot of firms.So there is no observably impact of finance development on the industry structure upgrade for the reason of the unbalance finance structure and the capital allocation environment of government control.At last,by the above-mentioned theoretical and empricial analysis,in order to exert the positive financial effection on the industry structure optimization,we provide some policy suggestions.For example,broaden the direct financing channels,develop venture capital,build the policy bank and so on.