The Research And Empirical Analysis On The Relation Between Financial Ecology And Economic Growth In Jiangsu Province

Zhou Xiaochuan, the President of the People's Bank of China, had first officially put forward the concept of"Financial Ecology"in 2004. Doctor Zhou took the subject of guarding against and reducing financial risk as the breakthrough point, discussing in the view of perfecting Chinese legal system, and introduced the theory in nature ecology into financial field for the first time. It extended the thinking models to solve a series of financial problems, and offered a new perspective to explore the relationship between finance and economics. Therefore, it is of great academic significance and practical value to study the relationship between financial ecology and economic growth.Firstly, this paper explains the concept of nature ecology and financial ecology and elaborates some of relevant theories. On the basis of summarizing the research on financial ecology both at home and abroad, the paper proposed the connotation of financial ecology, which means a dynamic balance system not only among internal subjects but also between the subjects and environment in financial ecology within certain time and space limits. The subject of financial ecology consists of financial institutions, markets and decision-making and supervision departments, while the environment of financial ecology includes not only the consumers demanding financial produce and service such as individuals, firms and the government, but also economical basis, institutional environment, local government and the social legal and credit circumstance.Secondly, the relationship between financial ecology and economic growth is analyzed by theory analysis and mathematical derivation in detail. On the premise of discussing the mechanism of the financial ecology subject and economic growth, the paper reviews the history of the development of finance theory and establishes a two-department extending model to make a further research on the influence mechanism.Finally, though collecting and displaying such data, the paper adopt the principal component analysis and entropy method to obtain two comprehensive variables representing the subjects and environments in financial ecology respectively. By setting up a VEC model, the paper makes an empirical study on the relation among the subjects and environments in financial ecology and economic growth and studies the Granger causality between the three time series. The empirical results denote that the subject of financial ecology and economic growth have a positive correlativity in the long run. Specifically, there exist two-way cause-effect relationship between the subject of financial ecology and economic growth, and one-way cause-effect relationship among the environments and subjects in financial ecology and economic growth. According to the result of VEC models, measures to strengthen ecological environment construction, especially the development of economical basis, the building of institutional environment and the improvement of government management have been suggested.