An Empirical Analysis On The Relationship Between The Development Of Small And Medium - Sized Financial Institutions And The Economic Growth In Yunnan Province

New type of investment, new type of consumption and "One Belt and One Road " are the new ways to promote economic growth in china. Yunnan province is the most important one in the three provinces of southwest China’s in the plan of "One Belt and One Road ".The goal of Yunnan province is to become the main aero of The greater Mekong sub-regional economic cooperation and the main aero to face Southeast Asia. The economic growth of Yunnan province is facing unprecedented challenge and opportunity.These great opportunities also have a close relationship with the support of the banking industry on the economic development.On the one hand, the theory based on industry economics thought that higher market share of big banks would destroy competition relations.It would cause the lower efficiency and the loss of welfare.On the other hand,the relate point of game theory and institutional economics is that high concentration may lead to scale economy and the reducing of transaction costs,So the impact of big banks on economic growth is not very clear.Grass-roots economic and small enterprises are the concentrate reflection of Yunnan provincial economy.Financial practice shows that Small and medium-sized financial institutions have a greater advantage of overcoming asymmetric information during the process of credit and adverse selection problem.In the recent ten years,The development of small and medium-sized financial institutions further ease the "define phenomenon" which causing in the process of the small and medium-sized enterprises’ loan.In a word,considering the link between medium-sized enterprises and economic growth,the link between small and medium-sized financial institutions and development of small and medium-sized enterprises,This paper mainly to analyze the relationship between the development of small and medium-sized financial institutions and the economic growth in Yunnan province.In the methods,This article use the share that the loan balance of other financial institutions accounting for the whole region’s loan balance which besides of four state-owned banks to express the development of small and medium-sized financial institutions.At the same time,education 、export、 consumption comes from government 、investment in fixed assets and the development of financial are the other control variables.In terms of time series’ processing,we use ADF unit root test to test variables’ stability.The results show that the the development of small and medium-sized financial institutions and economic growth are both belong to a first order differential stable time series.After overcoming the false phenomenon of regression,We use the methods of extended EG two-step to test the relationship between the development of medium-sized financial institutions and economic growth in Yunnan province.The results mean that it has a long stable relationship between them,the relationship is a significant positive correlation,Besides,The financial development and economic growth have a significant negative correlation relationship.Besides,Export proportion and physical capital investment proportion have a significant positive impact on economic growth at the statistical level of 5%,That means economic growth in Yunnan province is more dependent on exports and material capital investment then others.Meanwhile the probability value of education and government consumption both are large,That means economic growth in Yunnan province is less dependent on education and government consumption.The result of Granger causality test shows that the development of small and medium-sized banks in Yunnan province can decide the economic growth in Yunnan province,On the other hand, the economic growth in Yunnan province is not the cause of the development of small and medium-sized banks in Yunnan province.In a word,With the continuous development of banking industry in Yunnan province,the relationship between the banking sector and the real economy is more and more closed.The development of banking industry in Yunnan province has already hindered the economic growth.Some research think it because of the ownership of nationalized bank,however this article think that the lower efficient of bank industry is because of the low level of development of medium-sized financial institutions.Big bank is the reason that financial efficiency and the real economy efficiency do not adapt.It Flooded the positive effect that small and medium-sized financial institutions on the economic growth.So The government should encourage the development of small and medium-sized financial institutions rather than relying on economic growth to promote financial reform.