Study On The Relationship Between Financial Development And Industrial Structure Upgrading In Hebei Province

Finance stands at the core of modern economic growth and plays a vital role in the core competitiveness of a country.Throughout upgrade of industrial structure enormous amounts of capital are required,and therefore,finance,essentially as a means of financing of funds,will be a strong impetus to upgrade of industrial structure and economic growth.As a major industrial province,Hebei perseveres in the reform of industrial structure,but when compared to the national average and its neighboring regions,it still has a long way to go in upgrading its industrial structure.The study of the relations between financial development and upgrade of industrial structure of Hebei province aims at promoting the progress of its upgrade of industrial structure,which will have,to a large extent,a positively practical significance for the economic development of this province.This paper,beginning with theoretical analysis,analyzes the research literature written by domestic and overseas scholars about the relations between financial development and upgrade of industrial structure and sums up their definitions,theories and mechanisms of action.And then,through exploring the reality of financial development and upgrade of industrial structure in Hebei province,it finds out some problems in the process of financial development influencing upgrade of industrial structure,such as the low proportion of financial industry in the tertiary industries,the improper credit structure in upgrade of industrial structure,the single financing channel of industries,and the insufficient inner motivation of finance for upgrade of industrial structure.Additionally,by selecting a few indexes of financial development and upgrade of industrial structure and using relevant panel data from 11 prefecture-level cities in Hebei province from 2005 to 2017,it builds a fixed-effect model and empirically analyzes their relations.The result shows that in Hebei province,overall amount of finance has a beneficial effect on both rationalization and supererogation of industrial structure,and in terms of financial efficiency,it can only boost supererogation yet restrain rationalization.The effect of financial structure on rationalizing and upgrading of industrial structure is not significant.Finally,based on the above analysis,this paper gives its suggestions to the relevant policies which are to increase the proportion of overall amount of finance in order to expand industrial capital supply,speed up the reform of banking industry for promoting the reasonable flow of industrial capital,expand the scale of direct financing for creating more channels of industrial financing,encourage financial innovation for accelerating upgrade of industrial structure,and increase the policy support of finance for stimulating industrial development.Figure 11;Table 11;Reference 52...