Empirical Study On The Relationship Between Gansu Financial Development And Investment In Fixed Assets

Financial development is a dynamic process of financial system in economics.This process could change all the system, which includes financial market, financialmarket structure, financial instruments and financial assets. Financial developmentcould make an increase of all parts of financial system. It not only raises theefficiency of financial operation activity, but makes growth in economics finally.Studying on the financial development in a region is a new angle of view. Empiricalstudy of it could enrich the theory of regional financial development, at the same time,it also could give some advices to the macro economy of this region.Through a collection of empirical study, this dissertation analyzes therelationships between financial development and investment in fixed assets in Gansuprovince. The first part of empirical study is descriptive analysis, which givesdescription of the situation in financial system and investment of Gansu provincefrom1995to2004. This part calculates the region financial interrelation ratio, thepercentage of GDP and investment, the ratio of fixed asset of investment and the ratioof asset formation. The second part of empirical study uses the econometricsinstruments to analyze the relation between financial development and investment infixed assets in Gansu. Through different econometrics models, this dissertationrepresents directions and intensity of these relations.The dissertation concludes that the financial development of Gansu promote theinvestment in fixed assets. The financial development of Gansu increases quickly, andpart of this increase benefits from the Development of the West Region. The absolutenumber of investment also grows constantly, however, the influence of public policyis not invisible. Additionally, the efficiency of financial operation activity is not highin Gansu province. The development of finance could not depend on the force ofmarket entirely.