Research On The Relationship Between The Financial Development And Economic Growth In Inner Mongolia

Finance is the core of modern economy society. Financialization has become an inevitable trend for the economic development of all countries. But which relationship did exist between financial and economic is a hot issue among economists. As an emerging market economy, the economic and finance of China Is growing rapidly. Financial developments play an important role in social economic life, and also have deep influenc2to set economic policy. At present, the economic level between western and eastern is unbalanced in our country, so it gives us an opportunity to research financial and economic relationship between different areas. So the studies of regional financial economy once become the hot spot in the academic circles. Some research made an important contribution for coordination of China’s financial and economic. In summary, Most of the theoretical support that financial development and economic growth has closely relationship, but some scholars have different opinions.This paper based on the actual situation of Inner Mongolia’s development, and use theoretical analysis and empirical research. The research indicators comprise of pgdp, fir, dl, deposit, loan, and cfr. Research methods mainly include unit root test, cointegration test and granger causality test. Do research respectively during1978-2010,1978-1991, and1992-2010data, and get research conclusion. During the whole research time, Inner Mongolia financial development and economic growth have causal relationship. But the conclusion about two subintervals is different.1978-2010years, economy and finance does not exist remarkable correlation relationship in Inner Mongolia. The1992-2010years, relations between financial development and economic growth have improved. The coordinated development of economic and finance is gradually formed in Inner Mongolia region.