Sichuan餾 Situation in Industrial Structure Upgrading and Financial Support

Zhou Ke

（College of Economics，Southwest University for Nationalities，Chengdu，610041，Sichuan，China）

JOURNAL OF ETHNOLOGY，VOL.6，NO.5，77-82，2015（CN51-1731/C，in Chinese）

DOI：10.3969/j.issn.1674-9391.2015.05.10

Abstract：

In 2013，the GDP of Sichuan province was 262 million yuan.Calculated at comparable prices，it increased 10.0% over the previous year.The contribution rate of the three industrial sectors on economic growth is 4.4%，62.3% and 33.3% respectively.Seen from both the added value and growth rate，the secondary industrys contribution to the economy of Sichuan province is the biggest.

This is also reflected in terms of the industrial sectors.The three industrial sectors in Sichuan province in 2013 was 130∶〖KG-2.2mm〗517∶〖KG-2.2mm〗353. Thus，the proportion of the secondary industry in GDP was greater than the sum of the primary and tertiary  industries.In 1978，the ratio was 445∶〖KG-2.2mm〗355∶〖KG-2.2mm〗200. In the past 35 years，the proportion of the primary sector industries  of Sichuan province declined sharply while the secondary and teriary industries rose greatly.

Is the adjustment of the structure of Sichuan provinces industrial  sectors reasonable？ A reasonable industrial structure is the important foundation for stable economic growth，and because of this， Kuznets（1973）listed it as one of the six major characteristics of modern economic growth.This article gives a detailed analysis on the situation and problems of upgrading the industrial structure  in Sichuan province from 1978 to 2012，and tests its relationship with the financial development of Sichuan province.The following conclusions are made from this study：

Firstly，with regard to the industrial structure of Sichuan province，2002 was a turning point.After that，the share of the added value of the secondary industry in GDP accelerated rapidly.However，the share of the teriary industry reversed，and has continued to decline.

Secondly，the imbalance of the industrial structure in Sichuan province since 2002 is not caused by mismatching resources，nor is it because something is wrong with the secondary industry itself. It is due to the fact that，since 1990，the productivity of the teriary industry increased too slowly，and，as a result，the teriary industry declined too rapidly compared with overall labor productivity.

Thirdly，although this form of structural imbalances exists，laborers in the primary sector of industy of Sichuan province have been shifting to the secondary and teriary sectors.Therefore，the industrial structure is still continuously upgrading.

Fourthly，financial development provides strong support to upgrading the industrial structure of Sichuan province.From 1978 to 2012，whenever the loan balance as a proportion of GDP rose 1%，it led to the rise of the proportion of the sum of the added value of the secondary and teriary industry in GDP by 1.57%.

Fifthly，upgrading the industrial structure in Sichuan province is due to Granger causality effect of financial development in Sichuan province.Otherwise it will not happen.

Based on the above conclusions，the effective method to correct the imbalance of the industrial structure in Sichuan province is to improve the labor productivity of the teriary industries.This can not only improve the GDP，but can also reduce the proportion of the secondary industries in the GDP.The department with the highest productivity in the teriary industry is production services.

Since 1978，the production services of Sichuan province have undergone rapid development.In 2012，the total employment of persons working in production services，including wholesale-retail，transportation storage，commercial leases，professional services，information-communication，and financial insurance，reached 454%，454%，112%，085%，084% and 052%，and the total proportion was 1069%.However，compared with the developed economies，there is still a big gap，especially in the professional services.

Concerning policy，we should open up further，improve the fiscal and taxation policies as well as land and price policies，strengthen the protection of intellectual property rights and construct talented teams，and furthermore，build an institutional environment with a low transaction cost，and promote a harmonious development of production services and manufacturing.

In addition to the governments guidance policy and market adjustment mechanisms，a reasonable financial structure is very important.The financial structure includes two aspects： the proportion of financial intermediaries and financial markets.Financial intermediaries are is the banking system.Carlin and Mayers research（1998）found that financial markets run well in developed economies， and banking systems are more efficient in developing economies.Lin（2003∶〖KG-2.2mm〗200）emphasized the importance of the scale of the banking structure.He thinks that companies in different industries are significantly different in size and risk，and need to be matched with different sizes of bank structure.Generally speaking，the scale of the enterprises in labor-intensive industries  is relatively small，while the scale of enterprises that are capital and technology intensive is relatively big.Therefore，current financial development in Sichuan province should give priority to the banking system.This means not only needing big banks to provide financial services for capital and technology intensive industries，but also needing small banks to meet the financial demand of the small labor-intensive enterprises.

In addition，we need to innovate financial services，establish and improve the corresponding financing support systems and products according to characteristic phasesand requirements of research，design，and application，construct a convenient financing platform，and support those eligible production services enterprises to seek financing from stock market and bond issuing.

Key Words：  Sichuan Province; industrial structure; financial development; production services

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