Empirical Study Of The Relationship Between Financial Development And Economic Growth In Chongqing

Since Chongqing becoming to municipality directly under the central government,economy and finance has made the development. Especially in last few years, withthe"314" deployment published and the establishment of regional financial center of theupper reaches of Yangtze river, Chongqing’s economy and finance have getdevelopment by leaps and bounds. So, which the relationship is between Chongqing’sfinancial development and economic growth at present? Did the financial developmentreally effectively promote the economic development? Did Economic developmentmake financial needs? This paper will look for the answer, by empirical test to theeconomic growth and financial development. Knowing the relationship can letChongqing government enact more effectively policies and regulations to promoteeconomic and financial development in Chongqing.Researching for the relationship between financial development and economicgrowth is a hot spot in the field of economics. There are a large number of theory papers,but it about Chongqing is very little. Firstly, this paper reviews the domestic and foreignresearch existing results, founding the researching on the regional financialdevelopment and economic growth is less, and then sums up several relationshipsbetween the economic growth and financial development. Secondly, the paper analysesin detail the present situation of securities、 banking、 insurance in Chongqing, andpreliminary estimates the relation of Chongqing’s financial industry and the economicdevelopment. Thirdly, select the index of financial development scale, on behalf of thefinancial structure, financial efficiency to avoid the different indicators leading to thedifferent results. Apply historical data and views6.0software to do ADF test,co-integration test, causality test and the correlation analysis. It is concluded thatChongqing financial development and economic growth is in a "supply the type",namely that the financial development is the economic growth of the single direction ofgranger reasons. Finally, based on the conclusion, propose efforts to develop theeconomy, pay attention to the balanced development of economic entity department andfinancial department, improve to the financial efficiency, and adjust to the structure offinancial institutions policy Suggestions.