A Research On Relationship Between Regional Financial Development And Regional Economy Growth In Guangdong Province

A study on demonstrating test shows that there is correlation relationship between regional financial development and regional economy growth in Guangdong province. On the basis of correlation study, we do Granger test by using the VAR model. The result of the research shows that regional financial development is the Granger causality of regional economy growth in Guangdong province. But regional economy growth is not the Granger causality of the regional financial development.Through comparative analysis we find there is serous lag in Guangdong financial development on the industrial status, increasing velocity, intermediary efficiency and financial structure. The essential reasons resulted in lag in Guangdong financial development are that bad financial zoology, lower financial industrialization, shortage of financial industrial increasing pole and no taking advantage of geography strong points fully. There are some conflicts between Guangdong regional financial development and economy structure. These factors depress the development of finance in Guangdong province. In the long run the financial depression will hinder the economy growth.In order to resolve the problem of financial depression in Guangdong province, the related administration should develop finance deepening by improving the financial zoology, speeding up financial industrialization process, rationally disposing the regional financial resource and strengthening financial co-operation in Pan Pearl Delta regions. By these countermeasures we boost the durable competition of Guangdong financial industry rapidly, and accelerate economy growth. Conversely, the economy growth will lead further developing of financial industry.