Interactions Between Three Northeastern Provinces Banking And Regional Economic Growth

As China's economy conntinues to progress,the region's economic development level is gradually widened,this will be on a country's sustainable economic development and social stability of the long-term negative impact.And regional differences in economic development both at the same time,inter-regional differences in the level of financial development also can not be ignored.Our contury main focus on fiancial assets to the banks to the hands of the representatives of financial institutions,stocks,corporate bonds in the structure of China's financial assets accounted for only a small proportion of the banking sector and the study of regional economic relations broadly representative of the whole region and regional financial economic relations.Revitalize the northeastern region and other old industrial bases,the central collective leadership with the comprehensive construction of a well-off society in a major strategic plan,is the coastal development strategy and the strategy of developing the western region after a major strategic decisions.In the country,"a chess game",as the revitalization of northeast China coordinated development of regional econmy,"the third-step moves."For the northeastern regional of a direct impact on economic development rhroughout the country,"the whole game of chess"development.The industrial economy in the Northeast requires funds.In addition to access to funds granted by the State economic concessions,most of all loans by the banking sector.Therefore,in its own development of the financial industry is particularly important. And the development of the banking sector were the top priorities.So regional economic development can not be separated from the banking sector,the banking sector to promote a regional economy is unquestionable. Financial theory sector usually adopts Goldsmith(1969) related to the financial ratio(FIR) and McKinnon(1973) propose the money stock(M2) and the ratio of the gross national product of these two indicators that a State or regional financial and development level.Related financial rations means, "a de facto on the existing financial assets total (with some double counting ) and the natioanl wealth physical assets to total net goreign assets -a ratio ."In most studies,people related to the financial sector for the simplification of the calcuation of the ratio of financial assets and total GDP ratio.Apart from Chian scholars also demonstrated through a variety of financial methods to regional economic growth,but these do not have a specific response to the financial development of the regional economy"degree".Wang Guangqian(in the development of modern economic and financial contribution to the financial factors of the (1996)) studies have shown that ,through direct and indirece financial role in the economic growth rate in total accounted for 19.6 percent. That is the financial industry for economic growth contribution of 1/5.And financial institutions dominated the banking sector contributes to economic growth in the mumber?"China's banking sector contribution to the economic development of the analysis"(Zhao Xu and Ling Kang,2001) drew Wang Guangqian estimates of the financial contribution of ideas, of the contribution of China's banking sector to estimate, to quantitative analysis of national banks efficiency of the macro-economic growth.Other "in Nanjing financial contribution to the economic development of the Empirical Analysis"(Sun Zhaobin,2002),"on the banking sector to promote economic growth in the Northwest and contribution to the study on the issue "(Wu Shengli,2004) in the test,citde the financial contribution of banking sector also demonstrated the role of the regional financial.Terefore, this article from Wang Guangqian estimates of the financial contribution of the idea of the three northeast provnces in the banking sector were made to the provincial economic growth quantitative analysis.Commercial banks in the economic development of the contribution of their own performance in the banking business such as deposits and loans,payment,clearing and consulting services for the expansion of contribution to the growth of the economy through investment and financing, and other business decisions of the allocation of capital to achieve all the rational allocation of social resources through its banking sector output growth directly contribute to economic growth through increased investment of financial elements,to promote savings and investment in the conversion efficiency for economic development to provide capital investment.Therefore, in this ananlysis,the bank contributes to economic growth.Divided into three parts,elements of the colume increase,with q',which is divided into elements contribute to the investment of contributions to the savings rate,by s',capital formation the rate of contribution by c',as well as the contribution of labor input,with l'.Use the formula is q ' = s ' + c ' + l'.The second is the enhancement of productivity of the factors used w' said one factor productivity growth rate into related financial contribution to i',as well as contribution to the growth of loan ratio ,with m' ,the formula is w'=i'+m';Third ,the banking sector to increase its direct part of the total economy,with p'.Thus,the banking sector contributes to economic growth directly to the three elements,the over all contribution to the formula that is used T=q'+w'+p'.Subsequent analysis by the three northeastern provinces,in the analysis of all the data used is 1996-2006 ,all ten years of statistical data.Comparison points come to the following conclusions (1)First is the banking industry in Jilin province contribution to the growth of the economy,using three-factor method for the estimation of the contribution of T 1=q'+w'+p'=0.246+0.024+0.026=0.296 .The figure reached 3/10,more than Wang Guangqian(1996) estimates China's financial contribution to the economy, the banking industry in Jilin Province in 1996-2006 decade rapid development,economic development in Jilin Porvince has been very promoting,but in the related financial ratios,Jilin province is also banking deposit and lending sections and the proportion of GDP accounted for the other there is a gap between the two provinces should be in a financial institution in deposets and loans banks make greater efforts to promote economic development. (2)Use of Liaoning province,the three-factor method of the contribution of T 2=q'+w'+p'=0.26886+0.01116-0.02=0.26. The three northeastern provinces as the lead brother economy, the banking industry in Liaonig province contribution to the economy is lower than that of Jilin province ,but also more than Wang Guangqian Numerical calculations traced to a number of reasons,the first is the savings rate,Liaoning province inciease in the saving rate is less than other provinces,as the saving rate in Liaoning province has been high, its growth will smaller space,resulting increase in the savings tate reduction.This was followed by the financial industry of the total number of the proportion of the number of practionners,but also lower.Liaoning province is again the lending ratio and the increase in the proportion of the financial industry are negative output growth ,the Liaoning province in these two areas room to grow smaller.(3)Heilongjiang province contribution of T 3=q'+w'+p'=0.16009+0.01135+0.00113=0.1726.Contribution of the bank only 17.26 percent,lower than the calculation of Wang Guangqian(1996),the Heilongjiang province decades of the development of the banking sector contribution to econmoic growth in China has not reached the 1996 financial contribution to the growth of the economy.In the weakest rate of capital formation ,economic contribution of noly 2.38 percent,far lower than the 17.46 percent in Liaoning province,Heilongjiang province in the development of the banking sector at the same time,we should be focusing on the importance of capital formation,and thus improve bank contributes to econnmic growth.Although some of the data used in the insurance industry,the fiancial data of alternative banking, but did not affect,the estimation results.Northease though the three elements of the banking sector contributes to economic growth,we can clearly see that the banking sector to the economic growth which areas need improvement,what needs to be strengthened.This development of the banking sector after the Northease has great reference significance, but also makes the banking sectors in the promotion of economic development and play a due role.