Research On The Relationship Between Consumer Credit And Economic Growth In Xinjiang

Consumer credit is a kind of innovative financial products, and it can stimulatedweller consumption demand, and promote the economic growth. From economicsperspective, developing the moderate scale of consumer credit is not only developsthe national economy, raises the standard of living but also has a profound effect onfinancial markets. The consumer credit has launched since March1999, when thepeople's bank of China issued the guidance about individual consumer credit, then, aseries of consumer credit laws has been issued. But compared with developedcountries, the scale of China's consumer credit still has a long way to go, so thestructure is. Of course, it is not the scale of consumer credit the bigger the better.Excessive consumption credit can also influence the development of economy, whichbrings the adverse effect to the society. What is the relationship between consumercredit and economic growth? Are they mutually reinforcing each other in a certainrange or not? Domestic and foreign scholars pay more and more attention on thesimilar problems. Reasonable consumer credit can promote economic growth,excessive disorder consumer credit will affect the development of economy, and evencause a series of social problems. For China's consumer credit started late, small scale,development is slow; So this article focus on the consumer credit of the positive role,the research object will be located in Xinjiang, Xinjiang is located in the motherlandfrontier, compared with the mainland, the social economy development is relativelybackward, and its consumer credit business development level is low, making it as theresearch object, analyzes the relationship between consumer credit and therelationship, which not only has the important practical significance to Xinjiang butalso to other western provinces. And promote the prosperity and development of thewhole country.Through collecting data, this article chooses some significant economic variables,using qualitative method to analysis the proportion of Xinjiang consumer to the whole country, and the difference with the whole country; and using the method ofcomparison analysis the contribution that Xinjiang had done to the economic growth;and using empirical research method, by demonstrating Xinjiang consumer credit andthe relationship between economic development. In the empirical study, I selected thebalance of Xinjiang consumer credit and GDP as the representative variables, thoughthe united root test, cointegration test and Grainger causality test. The result is thatGDP could made consumer credit changing. At the same time,this article alsoanalysis the reasons why consumer credit developed slowly, combined with the actualsituation in Xinjiang, this article put forward to promote the development of consumercredit in Xinjiang, in order to promote the great-leap-development of Xinjiang.