A Study On The Financial Support For The Upgrading Of Industrial Structure Of Shandong Province

Finance is the core of Modern Economy and more importantly it’s the key member ofthe Market Economy. Restructuring and upgrading of the industry is the process ofoptimizing the allocation of the resource as well as the important mark of economydevelopment. Finance irreplaceably supports the restructuring upgrading and optimizingthe industry with the orientation of the investment. Shandong Province has been strong inagriculture and economy, but in relative to the economy related data proportion of grossproduction value or structure of the employment in Guangdong Zhejiang province and soon, Shandong has a long way to go. Then optimizing the structure of economy is thepriority for a better and faster economy development in Shandong Province.The study of optimizing the structure of economy takes the finance, supporting theupgrading of industry structure, as the study object. According to the study applies therelevant theoretical knowledge of Finance and Industry Economy, The first part based onthe economic data of finance development situation in Shandong Province and of theprocess of upgrading, presents some problems such as the gap in industry structurecompared to other stronger provinces’, the industry structure dose not match theemployment structure. The second part is empirical analysis for support of finance. Thelast not the least the essay, with the help of the knowledge before, proposes the advices forpromoting the finance support.According to theory analysis and the empirical study, there is conclusion including:On one hand, there are two kinds of financial support model, the bank based one and thecapital-based one. These two applying to financing services in different industries, canfulfill the finance function and promote the advancing of the industry structure differently.On the other hand, the empirical study with many measurement indexes, show that there isnot only long-term balance relationship between the upgrading industry and the financesupport, but the cause-result relationship. From the experience-based perspective, thefinance supports the industry upgrading.