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An Empirical Study On The Impact Of Financial Development On Economic Growth In Guizhou Province

Posted on:2016-05-09Degree:MasterType:Thesis
Country:ChinaCandidate:C H XiFull Text:PDF
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At present China is in the key stage of the transformation of economic development mode and deepening the reform of the financial system. An accurate understanding the action and the transmission mechanism that financial development increases to economy is conducive to effectively promote economic growth and structural transformation through the financial system.In addition, China’s regional economic development is very uneven, and there are significant differences between different regions in economic and financial development.Guizhou province is one of the less developed western regions, and there is a gap compared with the developed eastern provinces. How to coordinate the regional finance and the sound development of the regional economy, and display the positive effect of finance for patronizing regional economic growth become a theoretical topic worthy of attention and study.Therefore, it is very necessary to study the internal influence mechanism of financial development which affects economic growth, so that finance can incessantly improve economic development in the long term.Firstly, this paper summarizes the normal intensions about financial development theory in the theoretical study and the financial process in the theory of economic growth through inductive and comparative methods, induction and contrast. Secondly,after expanding the concrete intension and analyzing the models of economic theory,this paper constructs a series of indicators to measure economic growth and financial development. Finally, this thesis goes into the empirical analysis. Through the direct empirical test of the relationship between financial development and economic growth at first, a significant correlation and causal relationship can be found between them.The scale of financial development plays a significant positive role in promoting economic growth.Then the source of economic growth is decomposed into three parts: material capital,human capital and technical progress and the effects of financial development on economic growth through the three canals above will be analysed. Through thorough analyse of above-mentioned contents, appropriate conclusions can be made as follows:Firstly, there is a long-term stable relationship between financial development scale,efficiency and economic growth in Guizhou province. The scale of financial development is significantly positively correlated to economic growth and plays a one-way role. This has testified theoretically the Patrick-Hypothesis: At the early stage of economic growth financial sector promote economic growth throughexpanding financial institutions and financial service.Secondly, the economic growth in Guizhou province depends on numerous use of material capital. At the same time, human capital and technical progress have the disreplaceable positive effect on the economic growth. Material capital, human capital and technical progress have significantly positive effect on the economic growth in Guizhou province.Thirdly, financial development plays a significant role in promoting long-term growth through not only the traditional capital accumulation ways but also the technical progress mechanism for the local economy in Guizhou. Financial scale indexes makes significant positive effects of unidirectional on material capital accumulation, human capital and technical progress, which means that financial development can steadily promote local economic growth through these channels in the long term.Some potential innovations in this paper are as follows:Firstly, on the basis of measuring of economic growth source, this paper inquiry into internal mechanism of economic growth in Guizhou from the perspective of endogenous growth theory. Direct study on the relationship between financial and economic growth can not found the interior structure of influence mechanism between them. On the basis of measuring of economic growth resources such as material capital deposit, human capital and technical progress, this paper design indicators of financial development such as financial contribution rate from the aspect of endogenous growth theory. An indirect method will be brought into study and financial development process will be analysed, which takes effect on multiple mechanism and its internal structure process of economic growth.Secondly, combined with study conclusions, this paper puts forward suggestions and countermeasures which support economic development and further improve the efficiency of financial. According to the characteristics of the regional empirical analysis results and the environment of economic and financial, this article makes suggestions with higher appropriateness and pertinence to improve allocative efficiency of financial resources and to promote economic growth in Guizhou from some aspects below: enlarging financial capital scale,optimizing banking and capital market structure, introducing multifarious financial instruments,furthering innovation of financial institutions and system, etc.
Keywords/Search Tags:financial development, economic growth, material capital, human capital, technical progress
PDF Full Text Request
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