The Analysis On The Relationship Between Financial Development And Economic Growth

In recent years, the relationship between economic growth and the financial development was widespread concerned. In the long run, the financial crisis was caused by the economic crisis. But in the" Asian financial crisis" (1998)and the U. S. financial crisis(2008),the financial crisis broke first, and then the financial crisis impacted on the real economy. These changes allow us to rethink the relationship between the finance development and the modem economy. Finance to promote economic development, but can also hinder the role of the economy. Thus, we should study the relationship between them.In a long run,Shandong provent keeps a great increasing speed with a financial development.So what role does the financial development play in the whole economic growth,promotion or inhibition?We need a empirical analysis.So it is important for us to study the financial development and economic growth,and we can raise the policy proposals to promote the financial development in Shandong in the end.In this paper, we use the economics and finance theory, and collect the latest statistics of Shandong to study the financial development and economic growth. From the relevant theory to the facts, and then we use statistical software Eviews5.0 to analysis the Shandong'S economic and financial'S data. At last, based on the empirical analysis, we raise the policy proposals to promote the financial development in Shandong, meant to promote Shandong'S economic development.