Empirical Study On The County Financial Supporting Of Economic Growth In Developed Region

Since the emergence of bank, many people have thought about the function of finance development in economic growth, and research in this field has caused wide concerns all over the world because of innovative paper's publication written by McKinnon and Shaw. With the development of related theories and conduction on empirical studies, the positive correlation between finance development and economic growth has been proved. But the existing research both at home and abroad focused on macroscopic aspect while lacking the research basing on microcosmic aspect, and using of different measure index and research methods have influence on the correlation between finance development and economic growth. As the fastest developing region, the development of finance is very fast in Jinjiang city, economic growth in Jinjiang city generates great needs on finance and also sustainable development of finance promotes the growing of economy. But most of available paper carried on research in the view of qualitative analysis while lacking the research on the econometrics. So the objective of this paper is to analysis the correlation between finance development and economic growth by using econometrics.Basing on the theoretical analysis, the paper investigates current finance development and economic growth in Jinjiang city and propose the research hypothesis, then adopts normative research combined with empirical study, and analysis the correlation between finance development and economic growth, at last, the paper gives the corresponding policy suggestions.The paper is divided into six chapters.Chapter1 includes the reasons of thesis's topic selection, research method and relevant conceptions in the paper, the objective and content of thesis are also described in this chapter, at last the shortcomings and innovative points are given.Chapter2 focuses on the literature review at home and aboard in the view of theoretical and empirical research, and establishes the foundation for future empirical study.Chapter 3 analyzes the present situation of finance development and economic growth in Jinjiang city basing on the first-hand materials in field survey, and proposes the research hypothesis.Chapter4 carries on the empirical research of finance development and economic growth in Jinjiang city by using Co-integration Test and Granger Causality Estimation, the corresponding indexes are FIR and natural logarithm to per capita GDP.Chapter5 summarizes the experience and deficiency on the financial support to economic growth in Jinjiang city, thinking that the main deficiency are lack of the innovative ability of financial product and service, the inadequate of the development of capital market and the irregular of private credit.Chapter6 is the last chapter which gives the corresponding policy suggestions such as promoting the further development of finance mechanism, playing the potential of capital market, speeding up financial innovations and guiding the healthy development of informal financing.