The relationship between industrial structure optimization and financial support based on Co-integration analysis

Based on the data of 1978-2007, the relationship between financial support and the industrial structure optimization in the northeast China is discussed by Co-integration analysis and Granger Causality Test. We can conclude from the results of the empirical analysis that there exists long-term dynamic equilibrium interrelation, and that there is one-way Granger Causality between the two, namely financial support is indispensable to the industrial structure optimization in northeast China, which is helpful to the economy development and decision-making of the government.