The Comparetive Studies On The Relationship Of The Financial Development And Economic Growth Between Chongqing And ShangHai

The economists always pay attention to the relationship of the financial development and economic growth. But the conclusion is different because of the data, the methods and the object. This paper reviews the theory of the relationship between the financial development and economic growth. On the basis of the theory, the author utilizes the data of finance and economic in Chongqing and Shanghai from 1997 to 2006, does research on the relationship between the financial development and economic growth of Chongqing and Shanghai.The motive of this paper is that the author wants to look for a good ways to promote economic growth in Chongqing. So the author utilizes the data of finance and economic in Chongqing and Shanghai from 1997 to 2006, adopts linear regression method, does research on the relationship between the financial development and economic growth of Chongqing and Shanghai. According to that, the author gives some methods to accelerate the economic of Chongqing in order to early realize the goal of"314"which is put forward by the president of Hujingtao.In the first part of this paper, the author expatiates the significance of this paper. In the second part, the author reviews the theory of the financial development and economic growth. In the third part, the author describes the reciprocity mechanism of the financial development and economic growth; the author also indicates some factors that restrict the financial development. In the forth part, the author selects some index to show the actuality of the financial development and economic growth both in Chongqing and Shanghai, and the author compares the actuality between them. In the fifth part of this paper, the author utilizes the data of finance and economic of Chongqing and Shanghai from 1997 to 2006, the author adopts linear regression method, does research on the relationship between the financial development and economic growth of Chongqing and Shanghai. The conclusion shows that the bank and stock market development presents positive relation to the economic growth both in them; the relationship of the bank to GDP is significant, while the stock market makes weak effect on the growth of GDP. The author also does Granger Causality of the FIR and stock to GDP both in Chongqing and Shanghai.The result shows the bank development is the Granger causality of the economic growth both in Chongqing and Shanghai, but the stock market is not. In the last part, the author gives some suggestions to promote financial development of Chongqing for its economic growth.