Correlation Analysis On Growth Of Economy And Development Of Finance In Liaoning

The growth of economy has provided essential material base for the society. Since the emergence of finance, the relationship between growth of economy and development of finance has become a concerned issue for scholars all over the world. Numerous research results of western experts contributed to relevant study in China because there has been a long history of finance in developed countries. Since Reform and Opening up, domestic economy has experienced the high-speed development with two-digit GDP.As the deputy of northeast old industrial base, Liaoning province has gained a leaping development benefiting from the policy of eviving northeast old industrial base in 2003. However, in recent years, considering the depression pressure of the whole economy, the growth of economy in Liaoning province has encountered with the bottleneck. Looking back to the history, Liaoning province might be depended on the secondary industry excessively, which leads to the lack of service industry especially for the development of finance. Both research and practice show that prosperity of finance could play a key role in the growth of economy. Therefore, it is valuable to study the internal relationship between the finance and economy so as to build a virtuous circle in which they can promote each other. This paper is based on the previous relevant study results and attempts to study the situation of Liaoning province in recent 15 years using associated economic theories, the purpose of which is devoted to studying the relationship between economy and finance. It can be divided into five parts.Chapter One:Introduction. This part introduces the background and significance of this paper, after which it summarizes relevant previous results, preparing for the following analysis. Moreover, it points out the main content and outline associated with possible creative points and short comings of this paper.Chapter Two:Theoretical analysis of relationship between financial development and economical increase. This part generalizes relevant theories, which makes a basis for the following part. In this chapter, the definition of financial development is interpreted, after which the influence path is analyzed as well.Chapter Three:Analysis of situation in Liaoning Province about the financial development and economical increase. This part analyzes the real situation of Liaoning province in terms of the development of economy and finance from 2000-2014 and studies their characteristics and internal relationship. Firstly, it analyzes the economic aggregate and structure compared with Heilongjiang and Jilin Province, which have the similar location factors. Secondly, it shows the development of finance in Liaoning Province on the whole, coupled with research on the traditional and internet finance.Chapter Four:Empirical test of financial development and economical increase in Liaoning Province. This part selects relevant indicators to evaluate increase of economy and development of finance. After passing unit root test, it demonstrates that there is a long-term equilibrium between the two objects using co-integration analysis and Granger causality test.Chapter Five:Conclusion and suggestions. This part attempts to make a conclusion that there is a long-term equilibrium between the development of finance and economic increase. In addition, it tries to make some available recommendations focusing on the harmony of these two objects, which should emphasize the development of finance considering its relevant delay position. Policies such as encouragement of creativity, advocacy of investment diversification and management of financial markets should be taken into consideration.