Countermeasures To The Financial Development Of Henan Province Supporting The Economic Growth Of The Zhongyuan Economic Zone

With gradual development of the economic market,finance has become a indicator and engine for the regional economy and social development,researches on the relationship between financial development and economic growth become more and more popular.The Zhongyuan Economic Zone rising to a national strategic level and become a new economic growth pole,but the uneven economic development, insufficient supply of elements and funds hindered the rapid economic development, so how to establish a financial system,strengthen the function of financial intermediation, capital market and money market,guide the rational allocation of resources, for the study of the role of finance supporting regional economic zones and accelerate economic growth, it has a special theoretical and practical significance.This article based on the theory of financial development and regional Finance Functional Theory,discuss financial support to the economic growth of the Zhongyuan Economic Zone,use the mathod of combination of theory and practical,combination of qualitative analysis and quantitative analysis methods,study the relationship of regional financial development and economic growth,form the proposal of strengthen the supporting role of the financial industry in Henan Province.this paper, on the basis of the existing literature and theory,by establishing the table and graph,analyze the current situation of economic growth and financial development,summary the efforts of support made by the financial industry of Henan Province.Due to the dominant position of Henan Province in the Zhongyuan Economic Zone and the regional characteristic of finance,research on the Financial Development and Economic Growth, we use the date of Henan province from1978to2011,real per capita GDP for economic growth and FIR,SLR,Securities,Insurance for financial development,after the establishment of econometric models,including ADF test,Johansen cointegration analysis,Granger test,Impulse response and variance decomposition,the results show that financial development and economic growth has a long-term stable relationship,the indicators of financial development can be used as the Granger cause of economic growth in Henan Province,and the contribution of FIR is at the highest level,the contribution of Securities and Insurance is very low,Overall, the financial industry in Henan Province, the role of boosting the economy is at a lower level,the financial support is not obvious.By ananlyzing the problem and reason existed,strengthen the supporting role of the financial sector must increase credit support,improve the financial service system and foreign exchange management and financial environment,establishing the regional financial cooperation and coordination mechanism.