The Studies On Causal Relationship Between Banking Structure And Economic Growth Of Three Belts In China

There is a close relationship between banking structure and economic growth. Banking structure influences economic growth through the savings ratio, the transformed ratio of deposit to investment and the capital marginal output; economic growth affects banking structure differently at different stage of economic development.After the Reform and Opening up, banking structure has changed obviously in China, the concentration degree dropped rapidly, the banking industry competition was intensely strengthened. The center of this paper was the causal relationship between banking structure and economic growth of three belts in China. In the first place, unified the changed history of banking structure in China, the paper analyzed the relevance between banking structure and economic growth theoretically. Then, using the real diagnosis examination's method, the paper examined the causal relationship between banking structure and economic growth in 1997～2007. The result showed that in Eastern China, banking structure and economic growth had existed bidirectional long-term causal relation, economic growth was the banking structure's reason in short-term; in Central China, economic growth was banking structure's reason, but banking structure wasn't economic growth's reason; in Western China, there wasn't any causal relation between banking structure and economic growth.In this paper, the innovation was I had studied the causal relationship between banking structure and economic growth at local areas. And the paper thought more pointed reform strategies should be made to promote local economic and bank develop coordinately.