Relationship Between Financial Development And Economic Growth In Shaanxi Province

Economic growth is the most important economic questions in economic history,it has always been concerned.The emergence of finance provides new opportunities for economic development. Since the emergence of finance,focused on the relationship between financial and economy has been always discussing. Economic growth must be accompanied by financial development. And finance is an indispensable factor in economic growth.Economic and financial has become an inevitable trend of economic development of countries. And a large number of articles about financial and economy show that financial development is a very important factor for economic growth. Financial and economic promoting each other has been validated in the process of economic development of Western countries.Then in Shaanxi Province, dose the mutual relationship between financial and economic seted up? Is the measures effective that the development of financial to promote local economic development in Shaanxi Province?This paper contains the two parts of both theoretical and empirical research on these issues.In the first chapter we will introduce the reasons and the significance of choosing this topic in detail; in the second chapter we will sum up the study of financial development and economic growth abroad and a brief analysis of the status of the development of China's financial system;in the third chapter we will explain the role of financial development for economic growth, the role of economic growth for financial development and the interaction between each other with theory; in the fourth chapter we will brief analysis the situation about Economic and financials in Shaanxi Province,then we will selecte financial efficiency,degree of financial development,and the efforts of financial support to the enterprises as financial development indicators,at the same time,we will selecte real per capita GDP and Capital stock as indicators of economic growth.We use AVR model, Cointegration, Granger causality test methods for measuring empirical test to achieve the aim analysising the relationship between financial development and economic growth in Shaanxi.The fifth chapter we will put forward the corresponding policy recommendations.The result showed that Shaanxi Province's financial and economic's relationship performace economy leading financial development to a greater degree or extent,but it is not obvious that financial promote the economic growth.This theory is belong the areas of financial compliance.Second,financial support for the enterprises development not only can not to promote the economic development of Shaanxi Province,but also affects the economy in the opposite direction.It is shows that the financial paradox really exist Shaanxi Province.