The Impact Of Credit Disparity On Regional Economic Growth

In recent years, the size and structure of credit in financial institutions, such as bank. is optimized. Shandong Province is located in China’s southeast coastal areas and it has excellent geographical condition and excellent industrial base. The economy of Shandong Province is developing steadily. The size of credit in the financial institutions of Shandong Province promotes economic development.In this paper, we conducted an empirical study to analyze the relationship between the size of credit in financial institutions and economic growth. In this paper, we used the data of counties of Shandong Province from2007to2012and we used the model of panel data. In the end, we made recommendations according to the conclusion. First, we introduce the relationship between the credit of financial institutions and the economic development; Then. We study the status of economic development in the counties of Shandong Province. They are the QoQ growth rate of GDP per capita、the growth rate of capital stock、labor input、the QoQ growth rate of all loans from financial institutions per capita、gov and urbanization in counties of Shandong Province from2007to2012. We test the model. We estimate the model. And we analyze the model. Finally. We propose suggestions according to conclusion.The conclusion:The size of credit is the key to economic growth, and the different size of credit is the main cause resulting in an imbalance of regional economic growth in Shandong Province. The relationship between credit and economic development is positive correlation according to research. The growth of credit promotes the growth of economy. Final, we have some proposals from three aspects. We can improve the size and structure of credit, then we can promote economic development.