Empirical Research On The Impact Of Financial Development On Henan's Economic Development

Finance is the core of the modern economic society. The relation between the development of finance and increase of economy is given more and more attention. Existing extensive literature studies show that financial development is an important factor in economic growth. At the key period of reformation on financial system and optimization of economic structure, whether the relation between financial development and economic increase is compilable? If yes, what is the relation? And how the relation among financial intermediaries, securities market and insurance works? Taking Henan province as the research object, the thesis will give the elementary answers for above questions by analysis of relation between financial development and economic increase.This thesis constructs proper variables of financial development and economic growth, and researches mainly the relationships of them. On the one hand, using cointegrated relationship analysis and Granger causality test, the relations are be researched in 1990 to 2007 between Henan's financial structure and economic growth; on the other hand, using VAR model, impulse analysis and variance decomposition, we analyze Henan's financial development to the effect of three industries, and conclude.The thesis is divided into five parts, the first chapter systematically narrates the theory of the financial development theory and the economic growth theory at home and abroad, comprehensively understands and grasps the front trend of this question research, builds a better foundation for developed this project smoothly. The second part describes Henan's geographical advantage, the status quo of economic growth from the industrial structure, the investment in fixed assets, opening degree and the people's living standard and the status quo of financial development. The third part regards the financial variables and economic variables as the indicator, and processes the relevant data from the part of quantity and quality to comply with the requirements for study in order to make the quantitative test related to economic growth and financial development, and respectively analyzes the effect of Henan's economic growth in terms of the loan scale in financial intermediaries, the stock market financing scale and the development of insurance market. The fourth part profiles quantitative methods, and selects the indicator and data to research the transmitted relation between financial deepening and three industries, and get conclusions. The fifth part from the financial development angle analyzes how to choose the proper policy in Henan's financial development, so as to effectively promote Henan's financial development and Henan's economic growth.