Research On The Impact Of Financial Development On The Structure Upgrading Of The Equipment Manufacturing Industry Of Gansu

Equipment manufacturing industry is the basic industry in our country. Although the development scale of equipment manufacturing industry is large, the development level of equipment manufacturing industry is low, so we must take the path of transformation and upgrading. Gansu province, as one of the northwest less developed areas, the development of its equipment manufacturing industry already has a long history, but the foundation is still weak, its technical level and the overall competitiveness is low. We should conform to the regulations of Transform the economic development mode and adjust the industrial structure in national "12th Five-Year", "13th Five-Year" planning, and we should innovate the equipment manufacturing industry, and increase more investment to promote the structure of the equipment manufacturing industry upgrading. Besides stimulating Gansu Province's economic growth, and change the backward situation. Equipment manufacturing industry structure upgrading requires financial support, financial capital flows can changes the proportion of the industries. The optimization of the industrial structure upgrading needs the help of all kinds of financial services activities.This paper based on the theory of financial capital, Patrick theory and value chain integration theory, and it expounds the mechanism of the influence of financial development on the upgrading of equipment manufacturing industry structure, which makes the relationship between the financial development and the equipment manufacturing industry structure upgrade more clearly. After analysed the basic situation of Gansu's financial development, the development of the equipment manufacturing industry, and the basic situation of financial development on the equipment manufacturing industry structure upgrading. We found the financial industry in Gansu province is limited, it needs to expand and improve the relevant financial services to play a better role in industrial upgrading. In order to carry out a more comprehensive validation of the relationship between the financial development and the upgrading of the equipment manufacturing industry structure, we made two parts of the empirical test. The first part is about the upgrading of the industrial structure's test, which selected the relevant data of 1998- 2008 years of the financial scale, financial structure, financial efficiency and the output value data relates to the equipment manufacturing industry,then established VAR model to made a analysis; The second part is about the upgrading of the industrial structure efficiency's test, which calculated the equipment manufacturing industry's total factor productivity and technological progress, technical efficiency index through 2006 to 2013. Then used them and financial development indicators to made a multiple regression model. Through the empirical analysis, we found the financial scale and financial structure in Gansu have a positive impact on the structure of equipment manufacturing industry upgrading not only in the short but also in the long-term, but the financial efficiency has a restraining effect. This situation may be relates to the financial resources of Gansu do not reach a reasonable configuration. The financial scale and financial structure indicators of financial development have different effects on the technical progress index and the technical efficiency index of equipment manufacturing industry, which leads to the effect of financial development on total factor productivity is not obvious. It shows that the main way of promoting the upgrading of the structure of equipment manufacturing industry in Gansu is influenced by the improvement of the level of technological progress rather than the effect of technical efficiency. We should continue to improving the financial system, acting the financial markets, building a diversified financing platform, through those ways, we can provide more targeted financial products and services for the upgrading of the equipment manufacturing industry, and to meet the needs of the development of various types of equipment manufacturing enterprises.