The Research On Finance Support Of Builing Shandong A Strong Province In Economic Field

Finance is the product of economic development, and also the power which promotes economic development, especially in the modern growth and development of economy - In fact finance has been in the core of national economy. It is an important driving force of fast and continuous development in modern economy that finance adapts to and even is ahead of economic development. Compared with some other national province in the same level of economic development, Shandong is in a relatively backward state in the level of financial total quantity , financial development and financial structure because of the low-level economic structure , the lack of financial supportive policies and so on . That is, the support of Shandong finance to economy is relatively weak.The formation of regional economy is the prerequisite for the generation of regional finance, and the research of regional finance is ultimately based on the theory of financial development and economic growth. The development of regional finance promotes economic growth and upgrades industrial structure by means of increasing capital investment in the region, promoting technological progress, adjusting the division of labor and cooperation in the region and so on . Because of differences in resource endowments and industrial agglomeration the development of regional economy is not balanced . The role of regional finance is different from region to region due to differences of regions in economic foundation and financial external environment.In this article, the author selectes the Theil index to describe and analyse differences between regions of Shandong Province , and analyses differences between the region and the degree of contribution of inter-regional differences . He finds that the degree of contribution has regional characteristics and obvious stage characteristics. After that, according to the relevant study of regional total amount, industrial structure and regional financial differences , regional economy and regional finance in Shandong Province show an unbalanced trend of development within each region and between different regions . In the succedent empirical analysis, it is found that financial development between regions of Shandong province has a very clear difference in effects on economic growth: the economic growth of central region is mainly driven by investment in fixed assets, that of western region is more dependent on financial development, and that of eastern region is the result of the two aspects together . Based on effect analysis of the financial development on the industrial structure regional characteristics are very obvious.On that basis, policy suggestions that the author proposes of promoting Shandong province to construct strong economy include : nurturing two regional financial center in Qingdao and Jinan , adopt financial policy with moderate differences , newly build regional financial system ,and so on . Through such measures it provides strong financial support to the coordinated development of regional economic and further improvement of the quality of development in Shandong economy.