The Empirical Study On Effect Of Financial Development On Urban And Rural Economic Economic Diffiences In Liaoning Province

Since the reform and open, as the core of modern economy, the financial industry has developed quickly with the continual fast development of the civil economy. It plays an impartment role in the market resource allocation and spreads deep into each field of the social economic life widely and deeply. However, the unperfected financial management system in our country has lead to a weaker financial function in the country, which, to some extent, has restricted the development of financial in the country, even the whole economic in the country. Therefore, the reform of rural financial management system is an important part in financial system reform.China is a country with large population and rich in agricultural. The difference in the urban and rural economic growth has been increasing year by year, which has triggered a very prominent social problems, such as in urban and rural income gap widening, unbalanced development in various regions, expand in urban and rural culture quality gap, low productivity in agricultural labor. They all have the relation with the development of the whole national economy problems. Therefore, speeding up the rural economic growth in well-off society becomes the important problem to be solved.Because financial development is closely related to economic growth, this research takes the differences in urban and rural financial development and economic growth in Liaoning for research object to make theoretical analysis and empirical analysis, which bases on the research experience at home and abroad and the related theory. Our objective is to verify whether urban and rural financial development influenced the urban and rural economic growth and how to influence, which is in order to promote coordinated development of urban and rural economy. If we are successful in narrowing the income gap, we will have realized common prosperity. After combed the related theory and based on literature review, this research are investigating and analyzing the differences in urban and rural financial development and economic growth, based on the macro background and the actual needs. In this research, we have used econometric tools to make a theoretical analysis and empirical analysis of relevant data in Liaoning province during 1985-2008.This paper is mainly divided into five parts: The first part, introduction. From three aspects, one is from the background and significance; the other is from the research methods, ideas and content; At last, put forward the novelty and the deficiencies and the limitations.The second part, literature review. Review related literature of urban-rural relationship between financial development and economic growth in the domestic and foreign research, and analyze the theory of financial development, the theory of economic growth and the influence of financial development mechanism in the economic growth.The third part, present condition analysis of the differences in urban and rural financial development and economic growth in Liaoning. First of all, analyze the urban and rural financial management system in Liaoning province. Second, statistics related data of the urban and rural economic and urban and rural financial development in Liaoning province from 1985 to 2008 and analyze the relationship between two and two trends. Third, look for gap by comparing the data in Liaoning province and in other provinces of the country.The fourth part, the empirical analysis in the differences in urban and rural financial development and economic growth. Use the relevant data, set up the index system, and analyze according to the mathematical model. At last, use granger causality test to analyze the relationship between the financial development and the economic growth.The fifth part, The development of innovative rural financial system and policy recommendations. Receive the basic research conclusion according to the empirical analysis results. Using management tools to accelerate rural economic and improce rural financial management, proposed the development of innovative rural financial system.