Study On Relationgship Of Regional Financial Development And Economic Growth

The study of Financial Development and Economic Growth has been the hot topic for discussion in economic circles.But generally, more study is about whether the financial development has a positive effect to the economic growth, and how big about the effect. However, the effect about Economic Growth to Financial Development are often be ignored. It has been more attention on the national level research, but lack of the study about the regional financial development and economic growth. In fact, China's economic development is non-equilibrium, the study about the relationship of regional financial development and economic growth has become an important research direction.In this paper, Financial Development and Economic Growth of Zhejiang Province is as a research object. We use a series of time-series model and panel data model to study the relationship and interaction between the Financial Development and Economic Growth. This has important theoretical innovation and practical significance. The results show that:Zhejiang Province Financial Development and Economic Growth has a long-term interactionl, and in short-term, economic growth promote financial development, while the reverse is not obvious. Also found that the form of financial development and economic growth is difference in the term of reform and open. Early in the term of reform and open, the form of Financial Development is "supply-leading", and later in the term of reform and open, the form of financial development is "demand-following".The research ideas of this paper are as follows:First, we laid a theoretical foundation for empirical research by review the relationship between financial development and economic growth theory, and compare the typical theoretical literature Then, from the data of Zhejiang Province, we do statistical analysis and draw a conclusion of Financial Development and Economic Growth of Zhejiang Province. In the last, this paper present an advice about how to promote regional economic growth base on the economic and financial situation of Zhejiang Province.