An Empirical Study On Financial Support Of The Industrial Structure Adjustment In Shandong Provinces

Finance is the core of the economy, and industrial adjustment is an important means of economic development, and financial development has certain support role on industrial structure adjustment. The development of Shandong province needs to adjust the industrial structure now, how to use finance to promote the upgrading of the industrial structure has became an important subject.This paper used the industrial theory, financial theory and econometric methods, combined with financial development and industrial structure in Shandong province, do a deep research on financial support of the industrial structure adjustment, and do an empirical test of the relationship between them. The studies reflected these aspects: First, this paper introduces the related theory, and analyzes the financial of the industrial structure adjustment in theory. The financial development affects the industrial structure through three aspects, the financial markets, the financial structure and the policy financial, and some other indirect factors. Financial markets mainly through credit and capital markets, affect the mechanism of the formation of industrial capital, the orientation mechanism, credit catalytic mechanism, the risk compensation mechanism to promote industrial restructuring; Financial structure mainly through the adjustment of the financing structure to affect the industrial structure; Policy-oriented financial policy include financial institutions and financial policies.Second, use the economic data in recent years to analyze the history and current situation of financial development and the evolution of industry in Shandong Province. Compared with the national average and other provinces, Shandong Province’s industrial development has some problems, include the irrational internal structure and the slow development of service industry; the financial structure is imbalance in the market-level and low.Third, use1993-2010annual data, through the measurement model analyze the relationship between financial development and industrial structure, and highlight the relationship between financial and high-tech industry. Analysis obtain the long-run equilibrium relationship and two-way causal relationship does exist between financial development and industrial restructuring in Shandong Province, but financial development to support the development of tertiary industry is not obvious. Finally, according to the current situation and problems faced by Shandong Province, and the results of empirical analysis, this paper puts forward four suggestions:to improve the credit markets to support efforts, to tap the potential of capital markets, strengthen financial support for high-tech industry, active use of financial policies effects of industrial restructuring.