A Research On Relationship Between Regional Financial Development And Regional Economy Growth In Xinjiang Principal Function Region

Since the "Eleventh Five-Year Plan" has been implemented, the role of the regional financial development takes more attention by scholars along with the advance of the principal function region. The regional financial development of the principal function region not only has the integrated function of economic growth, but also has played an important role in resolving the bottleneck of resources and environment, adjusting of industrial structure, promoting infrastructure facilities construction, maintaining and retorting ecology, etc. Meanwhile the relationship between the regional financial development and the principal function region will catch attention of scholar. Therefore this text will discuss the relationship between the financial development of the principal function region and economic growth in XinJiang.This text bases on the theories of financial development to analyze the theoretical foundation of the relationship between financial development and economic growth of principal function region in Xinjiang. By using the theory of financial deepening, the theory of financial supply and demand, and the theory of financial cause and effect, this author gives theoretical explanation for the relationship between financial development and economic growth from different angles. By dint of the finance-rise linkage AK model,this author finds motivations of economic growth, and cleans the growth function of the construction of principal function region, so as to provide theoretical foundations on positive analysis and policy proposals.In chapterⅢ, this text analyzes the financial development of the principal function region and the status quo of the economic growth in XinJiang, and finds the unevenness of the economic growth in developing the principal function region of XinJiang, and there is difference in financial development. The Theil-index indicates that this kind of difference is broadening every year. This text analyzes the reasons of the unevenness between finance and economy in principal function region of XinJiang based on the practical its reality.There are differences between financial development and economic growth for the principal function region in XinJiang, but the points are if the regional financial development adapt the needs of economic growth and what kind of relationship between them. Those are the main idea of chapter IV and the emphasis of this text. In chapter IV, the author analyzes empirically the relationship between the financial development and the economic growth in the three types of region by using cointegration, Granger causality test, Var model, variance decomposition, etc. The conclusion is faster economic growth links to rapid financial development. In the short time, the region optimized to be exploited and the region stressed to be exploited in XinJiang belong to "supply-led" financial development, and the region restrict to be exploited belongs to "demand-pull" financial development. For a long time, the region optimized to be exploited and the key zone in XinJiang will promote the economy, the optimization zone also will promote the finance, but for the region restrict to be exploited, it is vague between the development of finance and the growth of economy in statistics, finance lags behind economy and it just passively adapts to economy.With the purpose of giving full play to regional finance in economic growth of the principal function region in XinJiang, the author suggests the government supply the inclining finance policy and the fiscal policy coordinates with it. At the same time, the government should develop small loan companies and small-medium sized banking institutions, and set up more specialized financial institutions on regional policy. They can effectively level up the regional financial development in XinJiang, promote the economic growth of the principal function region; furthermore, stimulate the deepening of the financial sector.