Financial Industry Development And Regional Economic Growth

With the development of the world economic globalization, the financial industry in a country or region plays a more and more significant role in daily life. But regional financial development is not isolated, it must be placed in the context of the policy which regards regional coordinated development in order to highlight its importance to regional economic growth. The Beijing Tianjin Hebei region used to be regarded as the North China’s important economic growth pole, which has a very eminent strategic position.However,for a long time, Beijing, Tianjin and Hebei have been "fragmented" and their development of centripetal force is not strong. So the overall economic strength has been lagging behind in the Yangtze River Delta and the Pearl River Delta region. Therefore, this paper will be devoted to show its in-depth analysis of what the relationship between Beijing, Tianjin and Hebei financial industry development and regional economic growth relationship.lt also aims to explore how to make use of their respective comparative advantages to effectively enhance the overall competitiveness of the financial industry in Beijing Tianjin Hebei region,which has important practical importance undoubtedly.In this paper, we utilize the theories of industrial economics and regional economics, teasing out the general principles of financial development and regional economic growth comprehensively.On the basis of the analysis mentioned above, the paper has successfully showed us the interaction between the development of financial industry and regional economic growth, and made a profound analysis of the necessity and feasibility on the coordination development of Beijing,Tianjin and Hebei.Based on the analysis of the current situation of Beijing, Tianjin and Hebei Province, the paper uses the relevant data of 13 prefecture level cities in Beijing, Tianjin and Hebei Province to calculate the FIR data’s spatial Gini coefficient, variation coefficient and Tell index.The paper also gives its comparative analysis to show the relationship between Tell index and financial location quotient.The results show that it is of great difference in some areas of the financial development of the 13 cities of Beijing, Tianjin and Hebei,and the uneven situation has not been obviously improved as time goes by. What is more, the paper selects the three core variables of financial related ratio, financial intermediation efficiency and financial savings structure to do some OLS regressions. The results show that the relationship between regional economic growth and regional financial development is not decisive.At last, the paper puts forward some countermeasures and suggestions on the overall positioning, the financial industry development direction, the overall operation of financial services, insurance and banking, the strengthening of financial supervision and policy implementation and policy evaluation.