Financial Support Of The Western Region's Economic Growth

Development of the western China's economic development strategy is to determine the pattern of topics of the times. According to the CPC Central Committee with Comrade Deng Xiaoping's "two situations" of strategic thinking in our country into the 21st century has made a major strategic development of the western region. Its purpose is to change the backwardness of the western region to improve people's incomes and living standards of the west, narrowing the gap between east and west, so that China's economy has entered a fast, stable, coordinated and sustainable development of the new stage.Economic growth in the western region must have a range of financial, financial and other aspects of comprehensive, multi-level support system. Finance is the core of modern economy, in this system of financial support for an irreplaceable important status and role. Therefore, how to further revitalization of the financial, give full play to finance in the central role of economic development for the economic development of the western region to provide a stable, sustainable and effective financial support, should become a financial and theoretical circles in-depth study and resolve a major issue. This paper attempts to try in this regard, and strive to explore the financial support to the development of an effective path to the west.For the non-balanced development of regional economy has become increasingly prominent contradictions and continue to expand the gap between the trend, this article on China's western region's economic and financial status of an overall summary analysis to explore the economic and financial development in less developed areas characteristics. On this basis, the use of 1980-2007 years, in 12 western provinces of panel data, as well as banking, stock market and insurance market data, using ADF test, EG co integration test, vector error correction model (ECM) and Granger causality test to make empirical analysis, from the perspective of financial development in the western region to identify problems and limited capital formation and ultimately lead to hinder regional economic root causes of slow development and put forward in line with our actual, characteristics of west China and with local economic growth to match the west road of financial development and the promotion of economic growth in underdeveloped areas throughout the strategy.In accordance with relevant data and empirical analysis can be drawn from China's western regions basically are in the less developed state of financial development in the shallow end of the development of state of the development of such a shallow state, to some extent hampered the state's financial support for the policy role of the Western The play, inhibit capital formation in the western region, greatly reducing the operation of the Western financial and economic efficiency, thereby constraining the development of western China and western economic long-term stable growth. Therefore, it is necessary to finance the development of less developed western regions Analysis of existing problems, analysis of financial development in less developed western region lags behind the formation of the reasons, in order to fundamentally solve the problem, to enhance the promotion of financial development in western forces led walk through the regional financial development regional economic growth path. This paper presents the last in the western region's economic growth in important areas of financial support and specific paths, in general the historical task of developing the western region, as well as current trends in financial innovation based on the economic growth in the western region's financial support should go step by step strategy for and to make constructive based on local characteristics, in the west to establish a financial holding company based in western financial centers to promote economic growth.