Economic Growth And Financial Development

Economic growth is one of the most important research topics for a long time. And status of modern economic growth, capital, labor and land on the effectiveness of economic growth is gradually weakened, and gradually occupies a key position in the elements to promote economic growth and financial development. Since the reform and opening up, China’s economy has experienced a long period of rapid growth without recession. Continue to experience in the process of China’s rapid economic growth in China’s market economic system reform and tend to improve the financial industry has made rapid progress in this process. Shanghai and Shenzhen stock exchanges were set up:the establishment of the CBRC, CSRC, CIRC. An increasing number of commercial banks, branches continue to expand. The growing capacity of the stock market with the process of companies listed. Financial development has promoted the rapid economic growth.Real data whether that financial development is whether it played a positive to promote the effectiveness of economic growth? In the different provinces, the relationship between financial development and economic growth are the same? What are the different? The various elements of the financial markets on economic growth is like? The answers to these questions on the decision-makers to take appropriate financial development policies in order to promote sustained and steady economic growth is more important.Associated with the phenomenon of economic growth and financial development, we attempt to reveal the relationship between economic growth and financial development. Combination of economic growth and financial development of the theory, since the reform and development to make the empirical analysis seeks to reveal the differences of economic growth in different provinces in China by the mathematical models and empirical financial reasons, and to explore the development of the financial, improve the financial system. improve financial services, to ensure steady economic rapid growth in development. For the various provinces for their own is extremely a profile to select the appropriate financial development strategy and make policy recommendations to better promote economic growth. This article is divided into five parts:The first part is the introduction of this article. This part of the first around the Bureau of Statistics released economic data and an overview of the status quo of the current regional economic growth and financial development. And then describes the framework of this paper and in our empirical regional economic growth and financial development, the need for reference described empirical results on the national and local governments to develop financial development policies.The second chapter is the literature review section. Summary and domestic research literature, our previous studies of this field is divided into two parts of the theoretical and empirical research, namely, domestic and foreign. Schumpeter (1912), the first in this field theoretical study concluded that the correlation between economic growth and financial development. Western scholars in the theoretical study after exactly whether the impact on economic growth for the financial development in-depth discussions, the majority of scholars believe that financial development is the impact on economic growth, but there are a small number of scholars on financial development and economic growth of negative view. Domestic and foreign scholars on the basis of theoretical studies, using different methods of empirical research on financial development and economic growth, the vast majority of scholars’ empirical results show that financial development has a positive impact on economic growth. Collate and analyze on the basis of the literature found in the domestic empirical research, lack of regional differences in the empirical financial development on economic growth literature. So, whether financial development of the various region affect local economic growth? In different regions, the impact of the different elements of financial development on economic growth is what? This is the main problem of this paper is to study.The third chapter is part of the indicator selection and empirical methods. First, a descriptive analysis of the status quo of financial development and economic growth, and then describes the way of financial development affects economic growth. After the status and pathway analysis based on financial ratios and securitization rates as explanatory variables. On the part of empirical model empirical analysis, analysis of its internal logic and the advantages and disadvantages of different measurement methods were analyzed and a detailed description of the model set and empirical methods.In Chapter Ⅳ. we do empirical analysis of China’s financial development and economic growth. The establishment of a panel data model and obtained the empirical findings. The results show that financial development and economic growth of the different provinces in China there are obvious associated, and the impact of financial development on economic growth in the eastern Midwest is different. In the economically underdeveloped areas, the impact of financial development on economic growth is weaker than in economically developed areas. Indeed, the middle of this study there must be some of the limitations and inadequacies of the data due to data limitations, the number of samples is not sufficient, there are some limitations; these will certainly affect the findings of this article.Chapter under Chapter Ⅳ of the model and empirical results are given policy recommendations, this view of the banking sector is the focus of economic development, and the government should give priority attention and support. And different policy recommendations are given for the eastern and western regions of different reference, to expect to give the local economic development practice and give advice.