Empirical Research On The Relationship Between Regional Scale Of Financial Development、Financial Efficiency And Economic Growth In China

China’s economy is developing rapidly and steadily since reform and opening up; the comprehensive national power and people’s life have been greatly improved. The world is paying more and more attention to Chinese development. With economic growth and the market economic system improving, the level of economic development among regions differentiated increasingly, and the contradiction of imbalanced development of regional economy becomes more and more remarkable. As the core of economy, finance plays more and more important role in economic growth, and it has been recognized as a measure of development speed.At the same time, financial development among regions differentiated increasingly too. China’s financial market is booming in recent years, and the study of regional difference in economy only focuses on the quantity level, but not the efficiency of financial development.This paper studies the relationship between financial development and economic growth theoretically and empirically. In the first part, it makes analysis and summary of the theories of the relationship between financial development and economic growth and the findings of scholars in country and abroad. Then the paper analyzes the function mechanism between financial development and economic growth theoretically. Finally, it looks back to the process of economic growth and financial development from1997to2011. In empirical part, this paper uses DEA model to measure financial efficiency of all regions. Then it studies the cointegration relationship between scale of financial development、financial efficiency and economic growth and estimates cointegration coefficient by using FMOLS.The empirical result shows that the financial efficiency of our country is not high and the difference of regional financial efficiency is comparative big. In regional level, the financial efficiency of the eastern region is the highest, while the financial efficiency is the lowest in the central region. Moreover, the reason why the financial efficiency of the city is relatively high is not the same in different regions. The study shows that there is a long-term cointegration relationship between the scale of financial development, financial efficiency and economic growth. In national level, financial development will promote economic growth and the role of financial efficiency in promoting is more apparent. But there are differences among regions.In the eastern region, financial development will promote economic growth and the role of financial efficiency in promoting is much greater than the scale of financial development. In the central region, the role of the scale of financial development and financial efficiency is considerable in promoting economic growth.But the role of the scale of financial development is little higher than the financial efficiency’s. However, in the western region, the role of the scale of financial development in improving economic growth is not significant, financial efficiency will improve economic growth to some extent.This paper gives five policy suggestions based on the study results:1) Change the financial development pattern;2) Propel china’s financial regionalization strategy, and implement different policy across different region;3) Keep deepening the reform of economic and financial system;4) Form the interaction system of middle and middle-west financial development, and focus on the harmonious development between finance and economy;5) Express advantages and characteristics of locality to shrink the regional difference of economic development.