The Study On The Relationship Between Financial Service And Economic Development In Jiangxi

The study on the relationship between financial development and economic growth caused lots of scholars'attention many years ago. More and more scholars in China have studied the subject recently. In recent years, the economic development has replaced the economic growth as an index to measure the society's progress thoroughly, and the financial service provided by our financial system is an important factor which affects the economic development. In view of different cases of each region in China, the regional studying on the financial system and economy deeply has more practical significance to make regional policies and promote regional economic development. So the thesis will explore the relationship between the financial service and economic development from the view of two dimensions which are economic growth and industrial structure adjustment in Jiangxi province.First of all, it narrates the financial theory and analyzing the mechanism of action in the economic growth and industrial structure induced by financial service. Further, it goes to the part of the positive analysis on financial service and economic growth and industrial structure adjustment by building models respectively. Then pick up three indices which are economic credit, financial institution loan scale and direct financing ratio as indices measuring the financial services. Make cointegration test and build vector error correction (VEC) model, do the granger test of causality with the financial service vs. economic growth and the financial service vs. industrial structure adjustment respectively. Analyze their relationship in long and short terms based on statistic data in the sample interval of Jiangxi province from 1985 to 2008.The result of positive analysis shows that the financial service relates to economic, industrial structure adjustment in long terms. And some indices about financial service are the causes to promote economic growth and change industrial structure adjustment. At last, the strategies and advices are concluded to boost a healthier, efficient and sustainable development in Jiangxi financial service, solve the reality problem of financial restrainer in the result of the positive analysis.