The Relationship Between Imbalance In Regional Economic Growth And Financial Resources Based On Empirical Study

In recent years, it was an indisputable fact that the regional economic gap has been rapidly expanding. As the most important, Meso-level financial forms, the relationship between regional distribution of financial resources and regional economic growth has caused unprecedented attention as a result of the growing economic disparities. Well, in our country, was the imbalance of regional economic growth could be indeedly explained by the distribution of financial resources? If it was, and how did it impact? This is the purpose of this paper.The second part of this paper showes the interaction mechanism between the two by the theory. In part 4, the relationship is analysised by using econometric models. The country is divided into eight regions and the data range is from 1994 to 2008. First of all, calculates the indicators that measures the imbalance by the weighted coefficient of variation (Wilson coefficient), the indicators show that the imbalances are significance. Secondly, the VAR model describes the impact of regional financial resources to regional imbalance in economic growth. The results show that some of the uneven distribution of financial resources are the Granger causes of regional economic growth, but the extent of the impact are different. The uneven distribution of financial resources can indeedly widen the imbalances in regional economic growth. Finally, the cointegration Panel-data model were established to analysis the efficiencies of each financial resources in every region. It found that there are long-run equilibrium relationship between regional financial resources and economic growth and the efficiencies in every region are different. That is the specific reasons why the distribution of financial resources can impact the imbalance regional economic growth.The third part of this paper simply explains the econometric models used for the empirical analysis. the fifth part makes some policy advice and points out the lack of this paper and the future prospects for further study.