The Study Of Internal Correlation Between Xinjiang Financial Development And Economic Growth

Financial Development play a special role in Economic Growth and has a significant impaction,from the mechanism of this financial crisis,we can see during the current social,the relationship between financial developments and economic growth has been further enhanced,both theoretical and practical exploration of the relationship between financial development and economic growth have their significance.This paper selects the relationship of financial development and economic growth as a research theme, through the decomposition of financial development indicator, attempts to acquire the relationship between every financial development indicator and economic growth, and look forward to come to the causal relationship between various financial factors, in order to point out the strategy direction of Xinjiang's economic growth and financial development.Part1: introduce the background and significance of the topics,and then discussed the schools of thought. Part2:introduce the theory of financial development and economic growth,then analyses the interaction mechanism of finaneial development andeconomic growth, pointing out that financial development affects economic growth by the ways of savingsrate, the converision rate of savings-investment, and the marginal efficiency of capital.Part3:describes the economic growth and financial development of Xinjiang,and then describes Xinjiang's achievements and problems since the reform and opening policy.Part4:the empirical analysis. Based on the above analysis,we established financial development indicator system, based on data from 1980 to 2008, this article has an empirical studies on the general impact factors of Xinjiang's economic growth and conduct a series of measurement tests.Part5:concluded by the above analysis and put forward policy suggestions.Based on the mathematical analysis, we got the conclusion:financial development lead to the accumulation of capital and increased the capital marginal benefit, and then promote economic growth. And then built up an endogenous model of financial development and economic growth, the main conclusion is that financial development can lead to economic growth. We conduct empirical analysis with Xinjiang's relevant data, and got the main conclusions:growth rate changes directly with financial efficiency as well as financial size., and financial efficiency Granger cause financial size. Xinjiang's financial development must be adapt to the characteristics of physical economy, and should attach importance to higher efficiency of investment rather than higher volume.Therefore,from the financial perspective the article suggested that we should promote financial market reforms, increase direct financing efforts and improve financial efficiency, thereby increase the efficiency of resource allocation to promote Xinjiang's economic growth.