An Empirical Study Of The Impact On Economic Growth Of Finance In Qingdao

Finance is the core component of modern economy, it links together all factor markets, it is also the commanding height of economic development in the future. Finance allocates social resources optimally in monetary form. For a long time, research on the relationship of financial development and economic growth has been a hot spot in the area of economics. After long-term empirical research, although still controversial, the idea that a mature and stable financial system has a significant impact to economic development has been generally accepted. The current study of the relationship between financial development and economic growth in China focus on national and provincial scope. Comprehensive, deep study of specific areas is relatively rare. Under the current economic situation, it is particularly urgent and necessary to analyze the relationship between financial development and economic growth in specific areas, compare them coincidentally, and make further analysis.In this paper, Qingdao is taken as the research object. On the basis of relevant economic and financial theory, indicators are constructed to measure the development level of economic growth and financial development. Take the data of economic and financial performance in Qingdao from the year of 1990 to 2009 as sample, empirical analysis is done by measurement software Eviews5.0. With the research methods of combination of theory and practice, and combination of qualitative analysis and quantitative analysis, this paper try to reveal the impact of Qingdao's financial industry to economic growth, then put forward policies and proposals on the financial industry.This paper contains six parts. The first part introduces the background, purpose and significance. On the basis of consulting research literature of domestic and international, research ideas and research methods are determined, innovations are also raised; The second part is the theoretical basis of this article, concepts and theories of economic growth and financial development are introduced. Later, the paper introduces relevant theories and mechanism of impacts between financial development and economic growth; The third part describes Qingdao's economic operation status and financial developing situation. Description of the economic development contains macroeconomic overview, foreign trade, investment, consumption and so on. The analysis of financial industry development contains banking system, insurance industry , securities industry and other department; The fourth part is the core of this paper, after selecting indicators of economic growth and financial development, all of unit root test, co-integration test, error correction model, Granger causality test, VAR model, impulse response analysis are used to assess the impact of Qingdao's financial industry to economic growth comprehensively. The empirical analysis results are analyzed and interpreted comprehensively; On the basis of the fourth part analysis, the fifth part puts forward the main problems of Qingdao's financial industry development, some policy recommendations are given. The sixth part summarizes the research results comprehensively, points out the inadequacies of the paper and the prospects for further research.This paper gets the following conclusions after empirical research. In Qingdao, the financial sector and economic growth are closely related. The banking system has significant positive promoting effect on economic growth, the effect coefficient is 0.9; The insurance industry has a slight positive effect on economic growth, the effect coefficient is about 0.15; In the short term, the promoting effect of Qingdao's stock market to economic growth is not significant, it even has a slight reverse inhibitory effect on economic growth; In the long run, stock market's impact on economic growth is constantly fluctuating, but the contribution is still relatively small. In addition, the credit supply of Qingdao's banking system plays a significant positive role in promoting investment, consumption, and export. The effect of credit supply on investment and export is larger than on consumption.