The Research On Financial Support For Pearl River Delta’s Industrial Transformation And Upgrading

In the post financial crisis era, economy of the periphery recover slowly, the global economic and trade are sluggish, bringing large challenge to the Pearl River Delta whose economic development mode depends mostly on the import and export. On one hand, foreign trade processing and manufacturing based traditional industries have entered the fading channel, on the other hand, with the gradually depleting of China’s demographic dividend, the advantage of low labor cost no longer exist. Underdeveloped industries, science and technology level, low industrial added value and the constantly industry moving-out phenomenon, have been pushing the economy into a bottleneck period. It is extremely urgent to seek new economic point of growth by industrial transformation and upgrading, which needs financial support. As finance is capable of capital allocation and then leading those to more profitable industries, it is an important topic in academic circles and economic development how to promote the industrial transformation and upgrading by financial support in more effective way.Based on the research existed, this paper starts from the connotation of industry transformation and upgrading, points out the two upgrade mode between and inside the three industries. It summarizes the development condition of finance from financial development and structure aspect, and then analyzes the transmission mechanism of financial support for industrial transformation and upgrading. Secondly, on the basis of theoretical analysis, this paper gives a qualitative analysis on the status quo of industrial transformation and upgrading in Pearl River Delta between and inside the three industries, the result shows many problems in the Pearl River Delta including low level and uneven developed industries, underdeveloped technology level among others. Meanwhile, through the analysis of the status of the financial development in the Pearl River Delta region it points out that the supporting of industrial transformation and upgrading of financial is not enough. Then using the panel data of cities in Pearl River Delta, it runs an empirical research from the between and inside of upgrading of the three times industrial structure aspects, the results show that the financial development, efficiency of direct financing and indirect financing is propitious to three times of the transformation and upgrading of industrial structure, as FDI was on the contrary; financial development and direct financing is conducive to the transformation and upgrading of the internal industrial structure, as indirect financing efficiency and FDI plays a suppressive role. Finally, based on the theoretical analysis and the empirical analysis results, it puts forward relevant policy suggestions of financial support on industrial transformation and upgrading.