Research On Credit On The Growth Of Economy In Gansu Province

The relationship between finance development and economic growth are widely concerned by people. Under our market economy condition, the bank credit and the economic growth close related. Economic growth needs the financial support, the faster economic development, the greater the demand for loans. In recent years, great progress has been made in Gansu Province's economy and finance, and the function of financial institutions to support economic growth has continued to increase. In this article, the objective will be located in the micro-credit financial variables to study credit issues in Gansu economic growth.The impact of credit on economic growth is mainly embodied in two aspects: Firstly, the total quantity, which is deficient or excessive; secondly, the structure, which is unbalanced or disequilibrium. From the theoretical and empirical perspective, this article analyzes the impact of credit on economic growth in total amount and structure; it also analyzes the problems in credit. As far as research methods concerned, using the statistical description method, it describes the present situation of credit and economic growth's total quantity as well as the structure, and presents achievements of credit and economic growth since reform and open up to out world. In addition, with the aid of the statistical analysis software and the utilization econometrics' method, it uses Granger Causality Test between the credit quantity and the economic output, finally indicates that the credit increases may lead the economic growth. According to analyzing the contribution which the credit industrial structure and the term structure made to economic growth, it comes to the following conclusion: In Gansu, so far as the contribution to economic growth is concerned, medium and long-term loans seems to be bigger than the short-term loans, the promoting function of the industrial loans is limited, while the function of the agriculture loans and the capital construction loans are obvious. At the same time, combined with the actual conditions, it analyzes some problems such us credit ceiling is small, credit structure is unreasonable and so on. Finally, from the impact of credit balance in the coordination of internal and external factors, it proposes some advices which include maintaining a smooth moderate credit growth, preventing the credit crunch, optimizing the economic structure, optimizing the system of financial organization, implementing financial and credit policies, strengthening the financial ecological environment construction, changing commercial bank credit business mechanisms.