Research On The Relationship Between Financial Structure Adjustment And Industrial Structure Upgrading Of Henan Province

Increasing the efficiency of funds and optimizing capital allocation is one of the important functions of finance. Adequate financial support is the key to boost industrial structure upgrade. Therefore, in recent years, whether there is a correlation mechanism between financial structure and industrial structure and how they are affected has become a subject that domestic and foreign scholars widely explored. However the research has not formed a complete system, and the development situation of various regions and the difference of each stage was seldom taken into consideration, results there will be a great difference. Therefore, in this paper, taking Henan Province as the perspective to explore, to study the relationship between financial structure adjustment and the industrial structure upgrading of Henan Province, proved how to adjust the financial structure of Henan Province, to play its active role in promoting the upgrading of the industrial structure.Under this background, this paper summarizes the major domestic and foreign research achievements, provides an overview of the theory; on this basis, combined with the actual situation in Henan Province, illustrated the status of the financial structure and industrial structure in Henan Province:Henan Province is the major agricultural province and the most populated province of China, and is also in the road to large economic province, when financial structure are constantly optimize the industrial structure tends to be reasonable, at the same time ushered in the opportunities of the Central Plains Economic District. But there is still many problems such as:the supply of financial resources is still insufficient, financial asset structure needs to be optimized, financial institutions are still too single, the proportion of indirect financing in the financing model is still too high, facing the challenges of the new-type industrialization and the agricultural modernization; the following part processes the empirical analyses by building measuring models,Then use the co-integration theory, Granger causality test, variance decomposition and impulse response function to study the relationship between them, drawing a conclusion that they mutually Granger causality, and promote each other. And also analyze the simultaneous contribution between them, which is consistent with previous theoretical study.At last, aiming at the problems and shortcomings of the development situation of Henan Province, together with the opportunities and challenges faces, the dissertation propose measures towards how to adjust the financial structure of Henan Province to speed up the upgrading of industrial structure, then forming a good-cycle mechanism。First of all, continue to improve the external conditions such as policy and regulatory, to increase the support capabilities; Second, deepen the reform of financial institutions, to promote the diversification of the financial system; Third, the establishment of a sound investment and financing mechanism, with the policy-oriented financial; Fourth, create a regional center; Finally, build a system of independent innovation, foster the development of innovative business.