A Study On Relationship Between Regional Financial Capital Structure And Economic Growth

There is important relationship between regional finance and its economic growth. The financial capital quantity is important, but financial capital structure is the vital driving force propelling its sustainable development. Even if the financial quantity grows in large scale, financial development can not last for long without the kind of financial structure which is in line with economic growth, therefore a sound development of economic growth is in turn affected.This paper studies from the perspective of regional economic capital structure, integrates Harrod-Domar model and Tobin model, and establishes a theoretical model between regional financial capital structure and economic growth with which it points out that financial capital structure plays an important role in finance and economic growth. This paper also adopts a positive method, takes Zhejiang Province for example and has a comprehensive review of the relationship between regional financial capital structure and economic growth. It concludes that the financial capital structure is out of line in Zhejiang Province, and different financial capital contributes differently to economic growth, among which the monetary capital makes the greatest contribution, whereas the role of non-monetary capital such as insurance and stock capital have not been given full play.In conclusion, this paper proposes referential suggestions and measures with present background of financial turbulence as well as regional economic features in Zhejiang Province so as to promote sustainable development of economy and finance in this region.