The Relations Between China’s Credit And Industrial Structure Optimization

Since the reform and opening up, the China’s economy has made great progress. At the same time increasing the total economy, industrial structure optimization is also rising. The Eighteen Party has put forward the strategic adjustment of the economic structure as the main direction of economic development, so optimizing industrial structure has become a necessary condition for promoting sustained and healthy development of China. And bank credit is the main source of corporate financing in our current capital market system, so the study of the relationship between bank credit and industrial structure optimization can better play the role of bank credit to promote the optimization of the industrial structure.This paper adapts the methods of theoretical and empirical analysis. In the theoretical analysis, this paper analyzes the interaction mechanism between bank credit and industrial structure, In theory only bank credit to the adjustment of industrial structure has an important role, the adjustment of industrial structure can also be an important role to promote the bank credit allocation, then it reviews the evolution of industrial structure and bank credit Since the reform and opening up. In the empirical research level, it using the ADF test method, Granger causality test and the nonlinear model of STR studied the relationship between bank credit and industrial structure. By ADF test, it shows that there is a long-term equilibrium relationship, through the Grainger test of causality, bank credit and industrial structure are causal relationship, and through the establishment of STR model, the result of the nonlinear model shows that bank credit play a significant role in promoting the industrial structure, and with the change of China’s industrial policy, the mechanism of action of bank credit to the industrial structure has also changed. In the early of Reform and opening up, the relationship between bank credit and the industrial structure is linear nature, but with the economic focus has been shifting from rural to urban, nonlinear relationship between bank credit and industrial structure increasingly significant. At last, according to theoretical analysis and empirical analysis of the conclusions, this paper presents recommendations such as adjust credit industrial policy, promote financial innovation steadily, and improve risk prevention and bank credit management mechanism.