Empirical Analysis On The Relationship Of Financial Development And Economic Growth In Chang-zhu-tan District

Chang-Zhu-Tan is the area with the highest level of development in Hunan province in urbanization and industrialization and it also keep a fast speed in the way of development. In order to propel the progress in newly-industrialization and newly-urbanization, and to ask for support from the state in strategic at nation level, Chang-Zhu-Tan Urban Agglomeration has experienced two years'preparation to get the chance to become the trial reform zone of energy-conservation and environment-friendly society by the approval of the State Council and the National Development and Reform Commission. This is one of the significant measures for the country to carry out the policy of promoting the rise of central China, and it is also the opportunity to accelerate the development of economy for both Hunan province and Chang-Zhu-Tan Urban Agglomeration.So how to enhance the interaction of promotion between regional financial development and economic growth becomes the hardest task for the economists and financier to solve. Whether the regional financial development of Chang-Zhu-Tang can spur the economic growth and the economic growth can accelerate the development of regional financial of Chang-Zhu-Tan become the emergency for the government of Hunan province to study. It is all about the way to coordinate the development between financial development and economic growth.In order to find the way to solve the problems, this article starts with the analysis of historic data and actuality analysis, using the empirical and normative analysis and setting up econometric model to test the causation relation in the long term stable relationship between the regional financial development and economic growth, and draw conclusions:(1) Chang-Zhu-Tan regional economic growth can propel the regional financial development, but there is no evidence to support the financial development can stimulate the economic growth(2) Chang-Zhu-Tan regional financial development will hamper the growth of economy. There is imbalance between the internal development of regional financial and for the growth of economy. According to the Granger causality test and econometric model test, a negative correlation was found between the monetization of regional finance and economic growth. So this article will give the recommendation in the end to hope it can help the development of Chang-Zhu-Tan's economy.