Research On Financial Convergence Impact Of Upgrading Of The Industrial Structure Of Hunan Province

At present, the international environment is complex. The world economic recovery is not sufficient, China's economy forward more advanced form, more complex division and more reasonable structure, economic development has entered a new normal. At present, the development of Hunan Province has reached a critical period, vigorously promote the project which is the Resource Saving and Environment-friendly society and new industrialization, agricultural modernization, new urbanization and information and comprehensively promote the well-off society, we must continue to rely on the upgrading of industrial structure. But upgrading of industrial structure had to rely on some external environment, especially the demand for capital and financial structure which adapts the industrial structure. So, there will have a significant impact on whether the efficient allocation of financial resources to upgrade the industrial structure, upgrading of industrial structure must with the finance support.In this paper, we mainly talks about financial convergence and upgrading of industrial structure of Hunan province, and we use methods contains theoretical study and empirical analysis. Firstly, we reviewed some aspects of the research about the financial convergence and upgrading of the industrial structure. On the basis of analysis of financial convergence and industrial structure of the relevant concepts and theories, we explored how financial convergence promote industrial upgrading, it depends on the effect of economies of scale, the effect of technological advances and innovation, the effect of risk diversification and the effect of self-reinforcing.And then, we reviewed development of financial convergence and industrial structure of Hunan Province from 1984 to 2013. Respectively, we analysis the current situation of financial convergence in Hunan Province from three aspects: 1.the overall situation of financial convergence, 2. the geographical distribution of financial convergence, 3.the industrial distribution of financial convergence. Then according to the process of the industrial structure of Hunan Province, we divided upgrading of industrial structure of Hunan province into four stages and analyze them successively. After that, we propose some problems in the development of industrial structure of Hunan Province at current situation.Finally, we use the factor analysis to measure financial convergence of Hunan Province. After that, we use multiple regression models to measure how financial convergence effect to upgrade the industrial structure. We show that financial convergence can promote the upgrading of industrial structure in Hunan Province. Then we use vector auto-regression model and with the impulse response function and variance decomposition to test the long-term effects between financial convergence and the upgrading of industrial structure. And also shows that in the long term, financial convergence and the upgrading of industrial structure have positive correlation, financial convergence can promote the upgrading of industrial structure in Hunan Province. At last, according to the empirical results and conclusions, and combined with the specific circumstances of Hunan Province, we put forward some relevant policy recommendations.