Financial Development And Economic Growth

We have paid attention to the relationship between financial development and economic growth for a long time. And the researches aim at countries in the past. Because of the gap between regions in the financial development and economic growth, the conclusions aimed at countries are untenable for the researches aimed at regions. The research object of this paper is some area in a country—Fujian Province.This paper consists of five chapters, two parts. First sums up the theory of financial development, empirical studies and spells out the frame of this paper; then explains the financial sectors' functions in the accumulation of savings, savings transforming into investment and resource allocation. The perspective of financial history concisely shows the causes of the emergence of financial development.The empirical study is followed. This paper's attention is the financial development while Fujian Province is seeking economy takeoff, as well as the contribution of financial sectors in the economic growth. Financial sectors are huge and complex, therefore this paper closely threads up finance intermediary, securities market, and insurance market, collects massive relative data, including Fujian Province and the nation. Through in-depth analyzing, we have found that some financial sectors in Fujian have indeed promoted economic growth. On this basis, we present certain supportive financial policy and suggestion to improve economy.The main innovations of this paper lie on the followings: Firstly, bases on the relation between financial development and economic growth and expresses it as "supply-leaded" & "demand-followed"; Secondly, bases on the situation of Fujian Province, uses new indexes about financial development and economic growth that more scientific than ever in econometric analysis. Also, brings the insurance into the research for the first time.Above the theory, current situation and the analysis results gives the policy suggestion.