The Influence Of Financial Development To The Economy Growth Of Jiangxi

Economic growth is the important premise to maintain social stability, and improve people's living standards. Finance is the core of modern market economic, financial activities have penetrated into all aspects of social life. How use financial development to accelerate economic growth, has gradually become a research hotspot and focus in recent years. Since reforming and opening, Jiangxi's economy has been developing rapidly, but there are certain distances between Jiangxi and other provinces especially develop provinces. So, the study of how financial development affects economic growth in Jiangxi province has important theoretical and practical significance to utilize the financial development to promote Jiangxi's economic growth and close the distance between Jiangxi and other developed provinces.This paper use the Endogenous growth Theory as a framework and the infection of financial development to economic growth as a main line, discuss and study the influence of Jiangxi's financial development to the economic growth. Basing on the results of empirical analysis, we put forward some corresponding policy recommendations. This paper is divided into seven chapters. The first part introduces the background and the significance of writing, and the ideas of research, followed by the introduction of financial development theory, and this would provide the theoretical basis for the research. Then we analyze the present situation of economic growth and financial development in Jiangxi province. In the fourth part, the mechanism of action of financial development to economic growth is discussed. Based on the economic data of Jiangxi, we establish the mathematical model of the affection of the financial development to the economic growth. Finally, policy suggestions from view of physical capital accumulation, human capital accumulation, technological progress and system reform which aimed at use the financial development to promote the economic of Jiangxi province are suggested:first of all; from physical capital accumulation point of view, first, we should perfect the stock market, to realize the enterprise's financing diversification; second, improve the efficiency of financial institutions, increase the role of financial development to economic growth promoting effect. Secondly, from the angle of human capital accumulation, first, we should provide education credit of ways to enhance the education investment; second, to provide on-the-job training, increase the accumulation of human capital. Thirdly, from the angle of technology progress, first, we should improve the capital market, improve the financial system of technical research and development and promotion of support; second, financial institutions should play professional, reduce investment risk. Finally, from the system reform aspect, first, we should improve the capital market, to promote the reform of state-owned enterprises; second, we should establish and improve credit guarantee system, increase financial institutions to non-state-owned economy support. Part seven contains conclusions and looking-forwards.