A Study On Relationship Between Financial Assets Structure And Economic Growth Of Guizhou

Financial is the core of the modern economy. Financial structure, financial development and economic growth are so important to domestic and foreign scholars for many years, especially after international financial crisis. Most researches show that the Chinese financial system is inefficient, and its structure is not equitable. It can't be forget that there are different characteristics in the financial structure of different areas. Thus, a concrete consider of certain areas of financial structure, economic growth, and the relationship between them is important. After these, we can take effective measures to solve the practical economic problems.Guizhou locates in the southwest of China, and it possesses rich mineral resources, geography resources, climate resources and tourism resources. Guizhou is an important force in the economic growth of the southwest of China. With the increasingly accelerated pace of economic growth, the financial system and financial structure of Guizhou have also undergone tremendous changes. The perspective of this paper is the structure of financial assets. The main contents of this paper are the changes of Guizhou financial assets structure and the relationship between the financial assets structure and the economic growth. The paper discusses the following aspects:First, by analyzing the related documents, the paper defines the concept of financial assets structure and identifies the outline of this paper. Second, this paper analyzes the changes of Guizhou financial assets structure. Third, the paper analyzes the relationship among the various types of financial assets, the total financial assets and the economic growth. After these, the paper analyzes the relationship between the financial assets structure and the economic growth completely. Forth, the paper analyzes the relationships between the financial assets and real economic development in the three industries. Finally, the paper provides policy recommendations.In spite of the existing literatures which about the relationships among the financial structure and the financial development and economic development are quite ripe, but there are rarely about Guizhou financial assets structure and economic growth. Thus, based on the existing theories, this paper gives comprehensive investigation to the conditions of financial assets structural and the relationship between financial assets structure and economic development in Guizhou, and for the purpose of improving the level of financial development and promoting economic growth. By the theories and empirical analyses, we can find these features :1. The features of Guizhou financial assets structure In 1980-2009, Guizhou financial assets structure have constantly improved, the total financial assets and the parts of it have increased. Since 1994, the contents of Guizhou financial assets and the lever of financial assets structure have raised. In the composition of financial assets, the currencies financial assets always be the majority of the whole financial assets, and the cash presents the downward trend; the insurance and stock financial assets have also increased. There are considerable changes in the growth rate and the variation scope of financial assets, except the insurance financial assets. The FIR, Marshall K value of the coefficient and the depth of the securities are among the top of China,only insurance penetration is still at a low level in the country.2.The features of the relationship between all kinds of financial assets and economic growth :In 1980-2009, there are no long-term stability economic relations between all kinds of financial assets and economic growth; there are no Granger relations between the insurance financial assets or the cash and GDP. But, there are two-way Granger relations between deposits with financial institutions and GDP. In 1994 - 2009, currencies financial assets and insurance financial assets have implicated to the economic growth, and the stock financial asset has not play its due role. The above analysis results also verify the conditions of Guizhou financial assets: Before 1994, the number of financial assets is relatively small ( such as the stock financial assets as 0 ), and this situation causes all kinds of financial assets not play an efficient role on the economic growth. After 1994, various kinds of financial assets and the number of financial assets are increasing rapidly. Thus, the impact on economic growth also has a significant effect.3. The features of the relationships of the total financial assets and the economic growth: In 1980-2009, the total financial assets have made a certain influence to the economic growth.4. The features of the relationships between financial assets structure and the economic growth: In 1994-2009, there is the positive relationship between the currencies financial assets and the economic growth; there is positive relationship between the insurance financial assets and the economic growth; there is the negative relationship between the stock financial assets and the economic growth. The financial assets impact on economic growth descending order as: currencies financial assets, stock financial assets, insurance financial assets. 5.The features of the relationships between financial assets and real economy in three industries: In 1980- 2009, there is no long-term stable economic ties between financial assets and real economy ;In 1994-2009, there are only two-way promote relations between the third industrial and financial assets. In certain extent, the degree of the influence of financial assets to the there industries descending order as: the tertiary industry, secondary industry, primary industry.Under the above researches, the paper put forward three policy recommendations to optimize Guizhou financial assets structure and promote the local economic growth.