The Correlation Analysis On The Development Of Finance And Industrial Structure Upgrading In Yangtze River Delta

In the post financial era, the key point of the development of Chinese economy is to adjust and upgrade the industrial structure, to transform economic development mode. Then the economic could grow sustainably. The finance is the core of modern economy. So it is important in promoting industrial upgrading. More and more scholars home and abroad have studied the correlation of the financial development and the upgrading of industrial structure. Most of the scholars found the financial development could promote the industrial structure to upgrade. These research findings ignore the impact of upgrading of industrial structure on the financial development. The upgrading of industrial structure is on the base of the financial development, so it deserves to study the impact of it on financial development. The Yangtze Delta is the most active area of China. The limitation of resource, environment and labor cost leads it to accelerate the speed of industrial structure upgrading. There is rich financial resource in this area. There is high financial density in Yangtze Delta. The financial innovation of the area is active. The article studies the correlation of the financial development and the upgrading of industrial structure. The result is useful to reform the financial system and to make industrial policies.There are six chapters of the article. The first chapter is about the research background, framework and the innovation point. The second chapter is about the theory of financial development and upgrading of industrial structure. This chapter also discusses the mechanism. The third chapter uses Geweke causality test to discuss the correlation between financial development and industrial structure upgrading in Shanghai, Jiangsu and Zhejiang. The data starts from 1993 to 2012. The fourth chapter system GMM method to study the impact of the financial development on industrial structure upgrading of the main 16 cities in Yangtze Delta from 2002 to 2012. The fifth chapter establishes the fixed effect model to discuss the impact of industrial structure upgrading on the financial development of Yangtze Delta and Pearl River Delta respectively. The sixth chapter is conclusion and policy recommendations. The main conclusion of the article follows:First,the article uses Geweke causality test to discuss the correlation and feedback of the financial development and industrial structure upgrading in Shanghai, Jiangsu and Zhejiang. Although the financial development stimulates industrial structure upgrading, the effect that industrial structure upgrading causes on the financial development is more serious. So Shanghai, Jiangsu and Zhejiang should make the industrial structure upgrading the core.Second,on the basis of data of 16 cities in Yangtze Delta from 2002 to 2012, the article uses system GMM method to discuss the impact of the financial development on industrial structure upgrading. The conclusion proves that financial deepening, financial structure facilitate the upgrading of industrial structure. Bust the effect is weak. While the efficiency of financial department couldn’t promote the upgrading of industrial structure.Third,on the basis of panel data from 2002 to 2012 in Yangtze Delta and Pearl River Delta, the article uses panel co-integration and panel regression analysis to study the impact of industrial structure upgrading on the financial development. The conclusion suggests that the promotion effect of industrial structure upgrading on the financial development is greater in Yangtze Delta than in Pearl River Delta. But the industrial structure upgrading couldn’t promote financial structure.