Regional Financial And Regional Economic Coordination Promotes Sustainable Development

Financial sector is the core and leading industry of the national economy, and it is also the pillar industry of modern service industry. In the process of a nation’s economic development, increase in financial superstructure is faster than that in economic infrastructure which is demonstrated by national output and national wealth. Therefore, rapid economic growth and fast financial development complement each other. As to the fact that great difference takes place in a country’s different regions, there may be many historical or natural reasons, but financial impetus is another element that cannot be ignored.As a large developing country, diversity of regional economic and financial development has always been one of the characteristics of the country’s national conditions. Under the background of unbalanced regional economic development, studying and researching how to achieve coordination between rapid and sustained economic growth and good regional financial performance has become the focus of common concern among economic theorists and practitioners. When studying the harmonious development between regional economy and finances, regional economic growth conditions and the corresponding dynamic mechanism must be involved among which one important aspect is to study the financial system and mechanism influencing capital formation, configuration and output efficiency.Based on the research carried out by scholars at home and abroad, the author compares the economic and financial development data of Shandong Province with those of Guangdong, Jiangsu and Zhejiang Provinces, studies many important problems such as the coordination degree, existing deep contradictions and causes of economic gap based on multi-angle and all-around empirical analysis, and finally puts forward the policy basis and recommendations on promoting economic and financial harmony of Shandong Province from the financial perspective of sustainable development.The main contents of this research include: First, establish a correlation analysis model about Shandong economic and financial operation, using the Grainger Granger causality test method which is widely used in the study of western economic theory, verify it using time series data, and gives out practice basis of Shandong financial pilot development including mechanisms for the pilot, appropriate scale, structural optimization and smooth operation.Second, analyze from the empirical point of view financial development in Shandong, Guangdong, Jiangsu and Zhejiang Provinces and their regional features of financial operation based on the spatial imbalance in supply and demand of financial resources. Compared with the other three provinces, Shandong is more dependent on indirect finance, so monetization of economy and financial index are relatively low, thus small amount of financial institutions in relatively small scale; more constraints on financial assets allocation, lacking effective demand for financial products supply and low financial openness and attractiveness.Third, analyze deeply the inner contradictions and reasons in Shandong financial development starting from the structural perspective of economic development and reach the conclusion that financial development gap is demonstrated by finances but the foundation and root lies in regional economic structure and regional economic particularity and limitation. In this part, the author compares systematically the location advantage, industrial structure, the industrial chain drives capacity, consumption structure and external developing environment and analyzes the main cause of lack of financial demand.Finally, draw a conclusion and put forward corresponding recommendation. The main difficulty facing Shandong is the demand limitation and the great contradiction brought by pressure caused by adjustment of economic structure and industrial development. The development path to promote Shandong economic and financial harmony and sustainable development is to deepen mutual penetration of economy and finance. This includes three aspects, first is industrial optimization to improve financial penetration; second is financial deepening to enhance economic penetration; third is core industry positioning of financial industries based on economic and financial interaction.As for research methods the author focuses on the comprehensive use of theory analysis and practice test of both the inductive method and the deductive method, emphasizes dynamic comparison, and tries to combine from the abstract to concrete standard analysis and practice test, general analysis and comparative studies.