The Area Difference Analysis Of Financial Services Industry And Industrial Development

Economic growth has always been one of the important areas of economic research.Beforethe1960s, economists on economic growth studies paid more attention to the input elements,accumulation of capital, labor force development and other aspects of the role of economic growth,the contribution to economic growth of financial development has been ignored. Whether there is acorrelation between financial growth and economic hotspots of Economics studies，is Gold·Smithabout the creative research on the relationship between the two after the publication of the theory，This relationship many scholars to be a lot of theories and empirical research that may not be asthey select indicators, so draw a different conclusion.The financial development mainly includes the financial service industry (the bankingindustry, Stock market, insurance business) development. Economic growth mainly includes thegrowth of primary industry, secondary industry and tertiary industry. The tertiary industryincluding emerging modern service industry. It has gone beyond the primary industry to becomethe second driver of national economy. And it will play a vital role on the transfer of our country’slabor force and economic growth.After more than30years of reform and opening up in China, has made achievements ofworld economic and social development. People’s standard of living either in substance or spiritlevel, has been a corresponding increase. The country’s economic, political and military strengthhas been greatly improved.However, in addition to the overall development, because of differencesin terms of location, policies, and uneven levels of economic development all over the country.And the contradiction of imbalanced development of eastern and western regions economybecomes more and more remarkably. Particularly with regard to the development of the tertiaryindustry. As the regional differences of economic development, financial services developmentlevel of the East and West there is a huge difference. Particularly in the aftermath of last century90’s, East and West China development gap in the service sector and on financial services isexpanding rapidly. These differences of East and West for our study on the relationship betweenfinancial services industry development and growth of the tertiary industry provides a goodsample.Sample data for this paper includes: Sum of the loan balance of Agricultural Bank of China,Industrial and Commercial Bank of China, Bank of China, China Construction Bank; Sum of the loan balance of All financial institutions; Various provinces and cities’ Property insurancepremium income; Various provinces and cities’ Premium income; Various provinces and cities’Increased value of the tertiary industry.Based on China’s Eastern and Western provincial data, using unit root tests, ADFcointegration tests and Granger causality test, this paper aims to analysis the relationship betweenthe financial services industry concentration degree and the tertiary industry growth in eastern andwestern region of China. The empirical results show that the relationship between the financialservices industry concentration degree and the tertiary industry growth there is a one-way negativecorrelation, but this relationship are clear regional differences.