Case Study Of The Relationship Between Financial Development And Economic Growth

The financial industry is a special service industry of financial products.The financial industry includ four sub-sectors which is banking, securities, insurance and other financial activities.It has some characteristics such as indexing,high risk,and monopoly.the indicators of financial industry good reflect the development of the nationaleconomy, is a barometer of national economic development. On the other hand, thedevelopment of the financial industry will also improve or restricting the developmentof the national economy, is the direct cause of the financial crisis and economic crisis.Because of the financial industry has penetrated into all sectors of the national economy,so the financial industry as make an important effect to the national economy,and makeinterdependence, mutual restriction, mutual development to the national economic.This paper takes Chongqing city as the research object, basing on relevant financial andeconomic theory,and constructs the development measure of economic growth and financial index.By finding and calculating the data in the search, use EVIEWS6.0software to make an empirical analysis of the data index. By using the method of combining theory with practice, qualitative analysis and quantitative analysis, tries to reveal the specificimpact of the financial industry to economic growth and find the problems of Chongqing City through the research and analysis of different indicators,and make policy proposals for the development of the financial industry. In a certain degree make some innovation to the index selection and the explain to the index.This paper is divided into five parts, the first part introduces the purpose and significance of this research and the research status from domestic to abroad, through readingand studying the relevant literature,making the innovations of this paper.The second part mainly introduces the concepts related to the financial industry, the theory of economic development and financial development theory,and discussing the influence of financial development on economic development in theory. The third part make a detailed description of the development of Chongqing economy and financial industry.The situationof economic development includs descriptions of GDP, fixed assets investment, exportand consumption and so on, the situation of the development of financial description includs Bank Securities,insurance and other financial industries.The fourth part is the corepart of this paper, based on the selection of indicators of financial development and economic growth indicators, using the stationary test, cointegration test, Granger causality t est, making a comprehensive evaluation of the influence between Chongqing financial industry and economic development, and explain the empirical results. The fifth part make the concrete policy recommendations according to the empirical results.