Analysis Of The Role Of Financial Development On Industrial Structure Upgrade

The upgrading of industrial structure is a necessary means for our country to occupy a favorable position in the new round of international competition. There are many dynamic factors in the progress and finance plays an irreplaceable role. In a sense, finance is a fatal link to upgrade the industrial structure. With the gradual improvement of China’s market economy, the role of finance attracts more and more attention.On the basis of summing up the results of previous studies, the article will begin with upgrading the industrial structure of Jiangsu Province as the fulcrum of research and use empirical methods to analyze the role of financial factors in this process. First of all, the article will analyze the status of upgrading the industrial structure and financial development of Jiangsu Province, select the relevant measure, use the multiple linear regression method to investigate the role of financial development in the industrial upgrading of Jiangsu Province as a whole and come to the conclusion that the level of financial development has a positive upgrade the industrial structure of Jiangsu Province role. Second, followed by panel data analysis of the13cities in Jiangsu Province, article has obtained the conclusions of an inverted "U" shaped relationship between industrial upgrading and financial development. That is with financial level of development in Jiangsu Province, the upgrading of the industrial structure first increased and then a downward trend in.Finally, based on the successful experience of domestic and foreign industrial upgrading, the proposed level of financial development in the industry to upgrade the process to enhance Jiangsu Province suggestions, including:indirect financing perspective, to strengthen the financial system for SMEs, improve the rural financial market, the timely introduction of the second board market, to provide adequate financial support for industrial upgrading; speak from the perspective of direct financing to strengthen the stock, the construction of the bond market, the introduction of a variety of financial products, and gradually improve the financial structure of Jiangsu Province, provide for industrial upgrading position of financial services; from the point of view to control financial risks, on the one hand, to provide the necessary venture capital for the GEM market, to strengthen the supervision of the problem assets on the other hand, to establish a sound risk control system for industrial upgrading and provide long-term stability of financial services. In addition, the increasing role of financial services in the process of industrial upgrading, but also provide related support services, such as personnel development, legal protection.