Research On Issue Of Shanghai Finance Supporting Fishery Economy

Fishery is a traditional industry in Shanghai with a long history. Finance is the core of modern economy. With the development of the society, It is treated as a new alternative strategy factor and play a huge role on the development of fishery. As the financial center of China, Shanghai financial infrastructure is abundant and has strong competitiveness. However, whether the financial is given a great push to fishery industry or not. It needs further research and analysis.With reference to the rural financial theory of rural credit subsidies theory, rural financial market theory and imperfect competition market theory, It provides the theory basis for financial support in the development of fishery economy. Fishery has income uncertainty, investment, long-term, low profitability, industry characteristics. Due to financial constraints of the formal financial institutions, it results in fishery capital insufficiency. Faced with such a situation, Informal financial support embody more important. By analyzing current status of Shanghai’s financial support for fisheries, it still exist many serious problems, such as the fishery industry development has the demand for money, but faced with inadequate funds invested by financial institutions. The legal system of financial support for fishing and financial service supply system is still imperfect. The corresponding financial products are not enough.Based on 1995—2011 financial and fishery data of Shanghai, this analysis takes financial scale, financial structure and financial efficiency to consider the relationship with the fishery economy. The per capita GDP of Fisheries is used to measure the development of fishery economy in Shanghai. This article applies models that is co-integration test, Granger causality test in research on the connection between development of Shanghai’s financial relationship and fishery industry structure. It comes to a conclusion that there is no long-term stable relationship among financial scale, financial structure, financial efficiency and development of fishery economy, not co-integration results. Fisheries industry structure is not Granger cause of the financial scale, structure of financial development is not the Granger cause of fisheries industry structure when in one lag issue. In the case of three lag period, financial development efficiency and the fisheries industry structure cannot be Granger reason. This is consistent with the co-integration results. Granger causality test results also show that Shanghai finance development and fishery industry are not causal reason for each other. It is concluded that the financial development f did not play a guiding role on Shanghai fishery industry. The power of the informal finance should not be ignored.The experience that foreign countries succeeded in fishery development should be studied. South Korea has good fishery insurance system. Japan established cooperative financial organizations that credit business to handle the fisheries, funding and support for the development of fishery first industry through the combination of agriculture, forestry and fisheries system. The Japanese government made use of agriculture, forestry and fisheries central financial public department to support the development of the second fishery industry. With fishery system of credit guarantee insurance to disperse loan risk, It can solve the problem of the agricultural credit guarantee efficiently. Taiwan also has comprehensive farmers’ organization named fisher credit department, which support the development of the agriculture fishery production and marketing, promote the optimization of Taiwan’s fisheries industry structure. Experiences based on the above, it is suggested that establishing effective fishery financial institutions and fishery insurance system in Shanghai. Meanwhile, improving the fishery insurance system, encouraging the development of guiding non-governmental finance to expand the main body of financial is an effective way to fishery industry development.Finally, Referred to the characteristics of Shanghai financial and fisheries industry development, the study put forward the countermeasures of putting positive financial system reform of Shanghai fishery, innovative financial service tools. The correct use of the government’s macro financial regulation, and actively introducing foreign capital, increased regulation, perfect the legislation of fisheries can upgrade fisheries industry structure.The innovations of this paper includes: Firstly, This paper regards Shanghai as study area. By analyzing related theories, the relationship between rural finance and economic growth, study the problems of the financial support the development of the fishery. Secondly, in the existing research, the empirical research between fishery economy and financial support is not much. In this paper, co-integration test and granger causality test is used as empirical analysis method to measure if financial supports the development of fishery industry in Shanghai. Thirdly, it creatively gives some suggestions based on the experience of the domestic and foreign financial support for fishing.