Statistical Research Of The Impact Of Finance Development On Economic Growth In The Yangtze River Delta Region

The economic growth is the most important premise in improving the standard of living, the society progresses and the political stability. Exploring the source of economic growth, is the eternal pursuit of one of issues of the economist. Since 50s in the 20th century, finance development has become the key factor which is a promotion on elements to economic growth confirmed by economist represented by By Edward S. Show, Goldsmith and Mckinnon. The promotion on the finance development to growth has been confirmed positive in most countries. The Yangtze River Delta region as one of the most developed and most competitive economic areas of our country has become the important area promoting economic development and enhancing the national competitiveness of our country, but compared with economic regions of the developed country, the competitiveness level is comparatively low. Under the background that the role of finance development to economic growth is more and more prominent day by day, analysing finance development on the impact of economic growth of the Yangtze River Delta region will contribute to the Government who carry out effective regulation and control of finance development and provide strong guidance to enhance the level of finance development and promote rapidly economic growth.Based on the role of finance development on economic growth and the use of literature research methods and comparative analysis, the article describes the process of economic growth and systematically analises the status of finance development in the Yangtze River Delta region in the degree of economic and finance situation, development of market-oriented financial intermediaries, securities market and insurance market.In addition,with the use of stationary unit root test, cointegration tests and Granger causality- test, the article discusses financial development on the impact of economic growth of the Yangtze River Delta region in the degree of economic and financial situation, development of market-oriented financial intermediaries, securities market and insurance market and proposes policy recommendations which accelerate finance development and promote economic growth.The studies suggest that the degree of economy and finance, the development level of financial intermediation, the securities market and insurance market in promoting economic growth differently in the Yangtze River Delta region. In the aspect of the degree of economic and finance, the deepening of it has promotes economic growth in Shanghai city, but it is not obvious in Jiangsu and Zhejiang province. In the aspect of the development level of financial intermediation, the improvement of the proportion of non-state loans for the economy has promoted economic growth in Zhejiang province, but it is not obvious in Jiangsu province and Shanghai city. In the aspect of the development of securities market, the functions of stock market in Jiangsu province and Shanghai city have not been fully reflected. In recent years, funds Collected in the stock market are significantly less than bank loans. There is no long-term stable relationship in the development of stock market and economic growth in Jiangsu province and Shanghai city. It is also not obvious in the two places. In the development of insurance market, insurance income compared to GDP in Shanghai is significantly higher than in other regions. The average level of this indicator is not obvious more than other place in National. In addition, the development of the insurance market has contributed to economic growth in Shanghai, Jiangsu and Zhejiang, and more, it is very obvious in Zhejiang.