Empirical Study On The Informal Finance Of The Northeast Area To Economic Development

Informal finance is one key part of Chinese financial system. Its unique concealment and underground character have always fascinated the researchers. As a financial channel which is used the most widely and is the most close to small and medium-sized enterprise, it plays irreplaceable role for economic growth of our country. Uses to be the national important economic center, the old industrial bases in northeast China and the northeast big granary, the northeastern area is the unique corner in Chinese economic system. After the founding of our country, developed capital accumulation played promoting role for the formation of informal finance. In the background of the old industrial decline, Party central committee put forward the policy for revitalization of northeast old industrial base, stimulating the northeastern area showing new vitality and sending out different luster. Behind the flowery color, finance has always been promoting investment, then promoting economic development. In this logic, many small and medium-sized enterprises play the efficacy of many a little makes a mickle and contribute seventy percentage of the GDP. However, few small and medium-sized enterprise can get loans from informal finance institutions。 They instead get their capital from informal institution in spite of their own money. So how the informal finance of the northeast area influence the development of the three provinces in this area. And to compare the influences of the informal finance to each province, we can get more information which is very interesting.First, we talk about what is informal finance,what does it mean and what form does it have. From both the horizontal angle and the vertical angle, we find the complementary relationship between the IF and the FF.They constitute a whole finance system which provides capital for the economic development.Second, we use a model to estimate the number of the IF in the northeast area.We make the model more practical for putting a new variable GI (government investment) and adapting the FDI(foreign direct investment) to practical used FDI.We take Beijng as a standard city to get the correlation coefficient. Assuming that Beijing has no IF becaues of the most mature finance net and the most stringent financial regulation. Then we use the correlation coefficient and the data of the three provinces to calculate the IF of each province.We find the IF has always developing in a high speed in pacewith the economic conditions.Liaoning has the largest IF,second is Heilongjiang and Jilin has the smallest IF.Then we talk about how IF and FF affect each other.We make a chart to analyze how capital flow in the4-part graph.After making an empirical study between IF and FF, IF can contribute something to FF,but FF can not affect IF significantly.So we make the empirical study on IF to the GDP of each province.The result is:the IF of Liaoning and Jilin significantliy accelerate the GDP,but IF of Heilongjaing does not.GI has been encouraging the GDP of the three provinces.FF does not affect GDP significantly. So we can use IF to encourage the development of the economics.In the end,we give the suggestions about how to help the development of the IF.The IF institutions must discipline themselves. Legal status must be awarded to the IF. And a lot of experience we can get from other foreign countries is helpful for the IF development in our country.