Research On Credit Support For Regional Industrial Structure Optimization

The increase of regional credit and the transformation and upgrade of industrialstructure are driving forces to the adjustment of economic structure and thetransformation of economic growth method, which are crucial for the continuing,stable and sound development of the economic society in China. China’s financialsystem which is oriented by major banks determines the significant function of bankcredit to the growth of local real economy and the improvement of industrial structurein the long run. Since credit sources are important product factor, their allocationamong different industries has considerable impact on the optimization of regionalindustrial structure. In particular, compared with other areas, the development of thecapital market in the northeast part of China is still in its early stage, and bank creditis the major way for firms to finance their businesses all the time, which makes thefinancial support from banks crucial for the development of economy in the northeastpart of China. This results in the significance and necessity for investigating thedevelopment of bank credit, which bolsters the optimization of regional industrialstructure, in the three provinces in the northeast of China.In this article, the methods of theoretical analysis and empirical analysis are used.It finds that the development of bank credit has qualified support for the improvementof industrial structure in the northeast part of China, and its contribution is alsodifferent from areas to areas. Specifically, the development of bank credit in Liaoningprovince contributes significantly to the improvement of industrial structure, althoughit still has credit efficiency problem. At the same time, the development of scale andefficiency of bank credit in Heilongjiang province has a positive impact on theoptimization of industrial structure, but credit efficiency problem also needs to befurther improved. However, bank credit has less impact on industrial structureoptimization in Jilin province compared with the other two provinces, which turn outthe flawed bank credit structure in Jilin. On the basis of above estimations, this paperfurther provides suggestions aimed to adjustment the current bank credit structure.Therefore, this research has certain theoretical value and practical significance.This article states introduction in section1followed by the theory of loanable funds and credit rationing, the role of bank credit in supporting regional industrialstructure and the correlation analysis between bank credit and regional industrialstructure. In section3, this article states the current development stage of bank creditand industrial structure development in the northeast part of China, and theircomparison. In section4, this article uses time series multiple linear regression modelto estimate the scale and efficiency of bank credit, and its correlation with theindustrial structure optimization by exploiting unit root test, White test andco-integration test via Eviews6.0. In the last section, after taking the limited factorsof the relationship between bank credit scale and efficiency, and improvement ofregional industrial structure into account, this article provides suggestions, aimed atimproving the credit support strategies, from multiple facets, including thegovernment, banks, firms as well as environment in Liaoning, Jilin and Heilongjiangprovinces.