| The scholars and policy-makers are widely recognized thatfinancial development is increasingly becoming an important factorfor economic growth. The research on the relationship betweenfinancial development and economic growth has become one of hotspots during the long-standing theoretical research and empiricalanalysis. Foreign and domestic scholars have made a lot ofvaluable researches on the study of financial development andeconomic growth. The researches played an important role in thetheoretical guidance for how to play a good financial role inpromoting economic growth in order to achieve the positiveinteraction. However, although there are many researches but thecurrent researches are limited to the constraints of the dataacquisition. There are less systematic studies on the characteristicsof the domestic financial development and economic growth of theless developed provinces, as well as the relationship. What the Current status and level of financial development in the lessdeveloped provinces and what is the support role on the financialdevelopment to the economic growth? How the financialdevelopment promotes the economic growth and what is the effectsand extent? What are the constraints of the finance in support ofthe economic growth in less developed provinces and what is thereason? How to further enhance the ability of financial support foreconomic growth in less developed provinces? Answers to thesequestions have a certain reference value both for academia orpolicy-makers. If these problems are clearly the regional policymakers will be more conducive to tap the financial potential ofunderdeveloped areas, improve the efficiency of the financialelements of the configuration and promote the coordination ofeconomic and financial development to promote steady andsustainable development of underdeveloped regions economy aswell as the optimization of the economic structure adjustmentthrough financial development and reduce the imbalance in regional development. Therefore, the author selected the focus asthe study content in Jilin Province as an example. This paper isdivided into seven chapters; the basic structure and the logicalframework are as follows:Chapter1: Introduction. The theme of this paper starts theresearch on the relationship between financial development andeconomic growth from abroad and domestic theorists as well asdomestic reality background. At the same time, this chapter gives abrief introduction to the research ideas, methods, innovation andlack of structural arrangements.Chapter2: Theoretical Analysis. This chapter reviews thetheory of economic growth, regional economic growth theory andthe theory of financial development and economic growth. Thischapter focuses on the early research on financial developmentand economic growth, the formation of the development of modernfinancial theory and the further development of modern financialtheory. Chapter3: the Review of the Economic Development of JilinProvince and the and Analysis in Economic Growth. This partreviews the economic development of Jilin Province starting fromthe regional economic development. The economic development ofJilin Province is divided into three stages, the material foundationstage of national economic developmen（t1949-1978）, The stage ofdevelopment of the reform and opening （1979-2002）, rapideconomic development stage since the revitalization of the oldindustrial bases（2003-2009）. Meanwhile, this part analyzes thecurrent status of the economic growth in Jilin Province, elaboratesthe main features of the current economic operation in JilinProvince from the total economy, industry, agriculture, investmentin fixed assets, consumption, import and export and then promotethe main problems facing in the current economic operation in JilinProvince.Chapter4: Analysis of a Supporting Role the Financial Industryin Jilin Province, the Status and the Level of Development on Regional Economic Growth. This chapter elaborated thedevelopment status of the financial industry in Jilin Province fiveaspects which are the operation of the banking industry, theoperation of the securities industry, the insurance industry runningcase, the operation of the financial markets and the financialinfrastructure construction and ecological environment. After that,in order to analyze and judge the overall level of financialdevelopment of Jilin Province in the country’s ranking situation thispart measures the level of financial development in Jilin Provinceselected15indicators to constitute a comprehensive evaluationindex system of financial development using factor analysis andcluster analysis. The results show that there still exists a wide gapbetween the level of financial development of Jilin Province anddeveloped areas and the gap has expanded compared to the"Eleventh Five-Year". For the northeastern provinces the level offinancial development of Liaoning is the highest and the overalllevel of financial development is ahead. It has a better financial foundation while there is still a gap between Jilin Province and thedeveloped provinces. The development of the financial sectors ofJilin is still in its infancy. The whole financial industry, includingbanking, securities and insurance industries is not fully developed.There is still a large potential. In addition, the part also summarizesthe main features of the current financial operation in Jilin Provinceand analyzes the role of the financial support of the economicgrowth in Jilin Province from the effect of utilization of funds,economic restructuring, investment in fixed assets and small andmedium enterprises.Chapter5: Empirical Analysis on the Relationship betweenFinancial Development and Economic Growth in Jilin Province. Thepart first summarizes domestic research on the relationshipbetween financial development and economic growth. Based onthe results of previous studies, this part focuses on research on theimpact of financial development on economic development fromthe banking angle ignored securities and insurance industry combined with the actual financial development in Jilin Province.The actual financial development is that the asset size of bothsecurities and insurance sectors accounted for less than10%ofGDP and the overall size is small. When studying the role of thefinancial development for economic growth, the author mainlyselects the total scale indicators of financial development, financialdevelopment indicators of the efficiency of the allocation of fundsand financial development indicators of the credit structure andthen adjusts the data seasonally and raises the price factor. Afterthat the author does relevant variables unit root test andcointegration analysis then build a vector error correction model.The empirical results show that there is a long-term positivecorrelation between the level of financial development indicators,financial efficiency indicators, credit structure indicators and GDP.The role of the credit structure indicators to GDP are the most andthe coefficient reaches2.687. Financial efficiency indicators arefollowed by the role to GDP and the coefficient is1.539while the role of financial development indicators to GDP is relatively smalland the coefficient is only0.091. There exists one-way causalrelationship between the credit structure indicators and economicgrowth indicators and a two-way causal relationship betweenfinancial efficiency indicators and economic growth indicators whilethe causal relationship between the level of financial developmentindicators and economic growth indicators does not exist fromGranger causality test results. In addition, in order to examine therole of financial development on economic growth fully the VARmodel is built including the size of the population, the scale of credit,economic growth and the level of economic factors. The resultsshow that the credit lagged two has a positive role in promotingeconomic growth while the economic growth lagged1and2has apositive incentive effect on credit. Based on the impulse responsefunction diagram the credit and economic growth are mutuallycausal relationship in the10%confidence level. The real GDP ofthe first level changes negatively in the external impact of credit and from the second level the reaction process of the trueeconomic impact of credit continues to be positive along with theincrease of social mobility and the real economy, the impact arrivethe highest after level4(1years later), and has strong continuity.Chapter6: the Problems and Causes during FinanceSupporting Economic Growth in Jilin Province. This chapteranalyzes the main problems and causes of financial supporteconomic growth in Jilin Province from the three aspects of thefinancial aggregates, efficiency and structure combined theprevious chapter empirical analysis and transverse and longitudinalcomparison study of the historical data of the financial aspects ofJilin Province.Chapter7: Suggestions to Enhance the Ability of Finance toSupport Economic Growth in Jilin Province. For the existingquestions the previous chapter this chapter raises targetedsuggestions from the expansion of the total social financing,promoting the upgrading of financial efficiency and credit structure adjustment.Chapter8: Conclusion and Policy Implications. |
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