Research On The Financial Development And Economic Growth Relationship Of Huabei Region

Since1978, China’s reform and opening up, China (Beijing, Tianjin, Hebei, Shanxi,Inner Mongolia) economy entered a rapid development of lane, economic growthsignificantly and sustainable development, at the same time, the financial industry hascontinued to develop and expand, total financial assets increased from the beginning ofreform and opening up, when a single system nowadays, development institutions andfinancial business categories relatively complete system, development of financial industrygrowth is becoming the backbone of North China economic growth. However, due to someobjective reasons influencing the development of the process of financial market, optimize theallocation of financial sector to the economic resources of the role has not been fully revealed,financial reform is still arduous task. In this paper, through the statistical analysis of thesurvey and empirical, analysis of financial development in North China long-term correlationdegree of economic growth and development, and in-depth analysis of financial developmentand economic growth is closely related to what end, and affect economic growth, the extent towhich, and how to promote more balanced in North China to realize the two all-rounddevelopment, this paper will study and answer. This paper mainly uses the " empirical analysis and normative analysis, qualitative andquantitative analysis methods:" to the economic growth and financial development theory asthe foundation, through the investigation and statistics of North China in recent years, theeconomic and financial development status, based on historical data to establish a panelmodel for empirical analysis, find out the characteristics of the development of present, andputs forward to promote the realization of the faster development of economic and financialpolicy suggestions in North china. Through the historical data of the5provinces of NorthChina were two measurement test, respectively is the unit root test and cointegration test, toprove the economic meaning of index reflects the representative, index data is significantcorrelation between the stable and long-term, so as to ensure the reliability of data analysis.The econometric analysis of factors panel model between financial development andeconomic growth, a more comprehensive reflection of the relationship between financialdevelopment and economic growth in North china.To the north of5provinces from2002to2011ten years data as the foundation, conductsan empirical study on financial development and economic growth factors. In regard to thechoice of indicators, this paper uses four indicators to reflect the actual situation of the NorthChina Regional Financial Development: financial related rate, securities, insurance depth and depth of financial market depth; for the economic growth index, based on per capita GDP tomeasure economic growth.In the process of empirical research, empirical relationship of the main analysis of5provinces and cities in the economic growth and financial development in North china. Thefirst is the empirical method selection and index selection, and then according to the selectedindexes to establish a panel model; second is the model of section5provinces in the unit roottest, test data are stable; then the related cointegration test on the test model, economic growthand financial development whether there is linear correlation; at the end of the panel modelestimates, and the estimated results are analyzed, mainly focus on three aspects: the effect ofregional effects and time trends of economic growth, financial development.The results of the empirical analysis and test, the financial development in North China ispositively related to economic growth, but the effect of financial development on differentfactors have different effect on the economic growth, but basically the financial scale as theprimary factor of economic growth, securities and insurance followed, financial markets are atthe bottom, but still on economic growth has played an important role in. Among them,Beijing, Tianjin, Shanxi fixed effect is positive, the fixed effect of Hebei, Inner Mongolia isnegative, indicating that the financial development of the regional economic growth and thegeographical position is not much relationship. Due to the support of national economic and financial development policies and financial ecological environment gradually improved,positive measures, strengthen the capital of financial peripheral construction, with thefinancial development promotes economic growth has been very clear intention, while thepromoting effect of increasing year by year.Then, the quantitative statistical analysis of economic and financial in5provinces andautonomous regions in North China, but in the process of empirical research, empiricalrelationship of the main analysis of5provinces and cities economic growth and financialdevelopment in North china. First of all, with the selection of empirical methods and index,and then according to the selected indexes to establish a panel data model; secondly, thesection model of5provinces and cities for the unit root test, test data are stable; and then,relevant cointegration test of the model, the existence of linear correlation analysis offinancial development and economic growth; finally, to estimation of panel model isestablished, and mainly from the three aspects of the estimation results of the analysis, one isthe financial development and economic growth, the two is the regional effects of financialdevelopment, three is the time trend of the effect of financial development.The results of the empirical analysis and test, the financial development in North Chinais positively related to economic growth, but the effect of financial development on differentfactors have different effect on the economic growth, but basically the financial scale as the primary factor of economic growth, securities and insurance followed, financial markets are atthe bottom, but still on economic growth has played an important role in. Among them,Beijing, Tianjin, Shanxi fixed effect is positive, the fixed effect of Hebei, Inner Mongolia isnegative, indicating that the financial development of the regional economic growth and thegeographical position is not much relationship. Due to the support of national economic andfinancial development policies and financial ecological environment gradually improved,positive measures, the rapid economic development in North China at the same time,strengthen the capital economic circle of financial development and construction, through theimprovement of the financial development to promote economic growth through intention isrevealed, at the same time, the promotion effect also in increasing year by year.