The Empirical Analysis On The Relation Between Financial Development And Economic Growth In Xinjiang

The issue between Financial Development and economic growth has attracted considerable attention and has been the subject of many studies in recent years. Our country's area is expansive; the distribution of recourses isn't very balance. East area's economic development is above of our country's average level, but the west area's economic development is behind of our country's average level. Under this situation, when the different areas that economic development level is enormous differences face the same financial system, the function of financial developing to the economic growth must demonstrate different. The same to our country's other places, the financial develop quickly , financial organization become more and more perfect, the scale of merging fund extend constantly; The financial organization forms gradually. But the financial development in Xinjiang is lag behind the extension of financial scale, compared to the prosper province, after reform and opening-up, Xinjiang financial construction is singularity, and the efficiency is very low, all these factors affect the economic development of Xinjiang. According to the situation of financial development in Xinjiang, how to assign the financial resources,perfect the financial construction,improve the financial efficiency are the imminence problems to be solved.This paper empirically investigates the hypothesis of a causal relationship between Financial Development and economic growth in Xinjiang over the period 1978-2008. Special attention is paid to the integration properties of the series, in addition to analyzing the data using standard"pre-co integration"Granger causality techniques; this paper employ modern vector auto regression methodology (VAR).The paper composes with five parts. The first chapter recommend the research method,background,thread and meaning. The second chapter is about theory analysis of financial development and economic growth, thus afford theory base for the research of this paper. The third chapter is to analyze the actuality of financial development and economic growth in Xinjiang. The fourth chapter is empirical research about the financial development and economic growth in Xinjiang. This chapter uses many empirical researches to study the relationship between financial development and economic growth. The fifth chapter gives advices facing the disadvantage in financial development in Xinjiang.