Empirical Analysis Of The Relationship Between Economic Development And Financial Growth Through The Comparative Research Of Qingdao And Dalian

The relationship between the economic development and financial growth is an important issue in the current study of the public economics and administration.It is characterized by mutual reliance,condition and improvement,and reflects the capability for sustainable development,comprehensive economic strength and competitive ability of an area.The study and application of the relationship is very important for the economic development of an area,which can accelerate transformation of the development mode and help to maintain the sustained ecomic and financial growth.In the 1990s,Qingdao has been positioned to learn from Shanghai and catch up with Dalian,and its total economic output and local financial revenue surpassed Dalian at the end of the 20th Century.However,in recent years,the financial revenue and local taxation of Dalian are not less than those of Qingdao again because of its fast development.Although Qingdao and Dalian are very similar in the geographical position, city type and resource conditions,the economic development and financial growth of the two cities are unbalanced.So it is very important and necessary for Qingdao's conomic development and financial growth in the future to discuss how and why the two cities are so different with each oter in economic development,financial growth and tax burden level,and to find what measures Qingdao can take according to the national strategy,city position,economic transformation and development policy.This paper mainly studies the relationship between economic development and financial growth of Qingdao and Dalian by analysing their total financial revenue,tax burden and the elasticity of growth and marginal income ratio of their local financial revenue,and building a regression analysis model between the local financial revenue and the GDP of the two cities,empirically analyses the factors such as strategy,policy and structure which can influence Qingdao's financial growth,and gives some suggestions on how Qingdao obtains stable and substained revenue sources.The paper includes five chapters. In the first chapter,it begins with an introduction.In the second chapter,it introduces the basical theories and methods about the relationship between economic development and financial growth,and explains their correlation theoretically.In the third chapter,it studies the general situation and fundamental characteristic of the two cities in economic development and financial growth,analyses the correlation of their economic development and financial growth,and draws three conclusions:(1)The financial revenue and tax of Qingdao and Dalian grows with their economic development, and the trend is more and more obvious.(2)The tax burden level of the two cities is similar,but the total financial burden level and the proportion of non-tax revenue of Dalian is higher than those of Qingdao.What's more,the two cities can get more financial revenues according to the international standard.(3)The quality and benefit of Dalian's economic development is much better and the economic contribution to the financial revenue is greater by comparison,so Dalian's local financial revenue will catch up with Qingdao in the near future.In the fourth chapter,it studies the problems which influence Qingdao's financial growth and finds out that it is the fundamental reason that Qingdao's industry structure is unreasonable and its core competence is weaker.In the fifth chapter,the permanent mechanism for Qingdao's financial growth is discussed to be created.It suggests that Qingdao should stick to the scientific outlook on development,adjust to the national strategy,accelerate transformation of the economic development mode and industrial upgrade,improve the capability of independent innovation,encourage the development of the non-public sectors of the economy,attend to the trans-regional trade,coordinate the development of urban and rural areas.On the base of studying the relative theories and achievements,the paper makes the comparative research on the relationship between the economic development and financial growth of the two cities in an empirical analysis first time,and studies how to create a permanent mechanism for Qingdao's financial growth,which is very valuable and referable in coping with the global financial crisis and accelerating transformation of Qingdao's economic development mode and industrial upgrade. In addition,the paper maybe have some defects and should be improved in the future.When the regression analysis on the the relationship between the economic development and financial growth of the two cities is made,some factors,such as investment,consumption and exporting,are neglected,which can influence the reliability of the empirical analysis discussion.So the multiple regression is expected to be used in the further study.