The Relation Between Financial Assets Structure And Economic Growth

Finance is the key of economic system. The financial assets structure plays more important role in economic growth when the financial assets expand to a certain degree. Yangtze river delta is one of the most prosperous region in China. And the establishment of the Shanghai FTZ (Pilot Free-Trade-Zone, SH) brings opportunities and challenges. Such research on financial assets structure in Yangtze river delta region is meaningful to promote steady growth in region, and even the whole country.This paper does the brand new reseach on the issue of financial asset structure and economic growth, refer to the research at home and abroad, and based on the existing theoretical analysis. Firstly, focus on Yangtze river delta region, the paper does the theoretical study by means of Harold Thomas model, the theory of income and transaction cost, and the theory of constrained indifference curve. Secondly, the evaluation index system is carried out to describe the current development of the financial asscets structure in Yangze river delta region. Thirdly, the paper empirically studies the relation between financial assects and economic growth by setting up logistic regression model. Furthermore, the result of VAR model shows the characteristics of relation. Finally, based on the above analysis, differentiated development strategy is recommended with the background of FTZ.The article is unique in the following sections. Its object is Yangtze river delta area, which is different from the traditional way of national level. The evaluation index system is more complete. Besides, the latest data in2013is adopted. What’s more, the total financial assets and the internal structure are carried out separately during the empirical research. Last but not the least, regional differentiated development suggestions are put forward.The main conclusions obtained in this paper are:the regional financial assets structure is excessively bank-orientation. The securities markets is more turbulent. Vast space existes in insurance market, but the existing product is homogeneous. In brief, financial assets do not coordinate with regional economy. The development suggestions are:to build private investment management center and small&medium-sized enterprise financial center in Zhejiang. To construct service finance in Jiangsu to undertake the overflow capital, which is focus on manufacturing industry and foreign export trade business. To establish international financial center in Shanghai with the opportunity of FTZ.