A Study On Relationship Between Bank Credit Structure And Industrial Structure In Hunan Province

The Chinese economy has entered the stage of New Normal featured by slowing growth,structure upgrading and innovation driving.Hence,advancing the upgrade of economic structure,mainly the industrial structure,has become an important strategic task at the new stage.Located in Central China,Hunan Province is faced with many underlying problems,such as the slow adjustment to industrial structure,the high proportion of agriculture,highly energy-consuming industry and traditional industry as well as the low portion of tertiary industry,emerging industry and productive service industry.If those problems can not be solved properly,it will put an enormous pressure on the task for transformation and development.In essence,adjusting the industrial structure is the process of optimizing the resource allocation between different industrial sectors.Under this background,it has become a highly important topic of how to coordinate the resource allocation of bank credit loan,optimize the structure of credit loan as well as realize the mutual coordination and promotion of industrial structure development in Hunan Province.Therefore,great efforts should be made to research the correlation between bank credit loan and the adjustment to industrial structure as well as analyze the internal mechanism of bank credit loan influencing the adjustment to industrial structure.It is of significant theoretical value and realistic meaning to promoting the adjustment to industrial structure,optimizing the structure of bank credit loan and pushing forward the stable and sound economic development in Hunan.This paper has identified the problem regarding the correlation between bank credit loan and the adjustment to industrial structure.Another problem is how to coordinate between bank credit loan and the adjustment to industrial structure for mutual promotion and development.In addition,the two problems will be analyzed in detail.After defining relevant concepts and summarizing relevant theories and literatures,this paper will make an in-depth analysis on the interactive mechanism between bank credit loan and the adjustment to industrial structure.Based on the actual condition of Hunan,this paper has reviewed the development course of industrial structure upgrade in Hunan from the Reform and Opening-up.Besides analyzing the problems related to industrial structure,it will also make a study of the total credit loan and loan issuance in Hunan.Econometric models have been utilized to build a data model regarding economic operation in Hunan.The empirical analysis on the degree and direction of the influence of bank credit loan on the industrial structure of Hunan has been also carried out.Based on the current status of Hunan and the result of empirical research,this paper will offer some advice on how to better support the adjustment to industrial structure through the bank credit loan.As shown by the research results,there is a strong correlation between bank credit loan and the adjustment to industrial structure.The short-term loan has a low efficiency of fund utilization.The short-term bank loan has a low efficiency on the output value of the three major industries.Moreover,the short-term bank loan has the most obvious influence on the primary industry.The output value of the secondary industry and tertiary industry is promoted by the medium-term or long-term bank loan more obviously.With the increase in the bank loan,the output value of the secondary industry will benefit most,followed by the tertiary industry and primary industry.Moreover,the short-term or long-term loan can achieve a balanced relationship with the output value of the secondary industry in the long term.There is no long-term stable relationship between the output value of the primary industry(or tertiary industry)and short-term(or long-term)loan.Therefore,the utilization efficiency of short-term loan should be improved to advance the development of modern agriculture.It can be also considered that the credit loan should lean toward the transformation and upgrading of the manufacturing industry or strategic emerging industry.The credit loan for small-and-medium-sized enterprises should be increased so as to promote the balanced development and positive interaction of credit loan structure and industrial structure in Hunan.