Empirical Study On The Informal Finance Of Jilin Province To Economic Development

Informal finance as a supplement part of formal finance，is a considerablecomponent of modern financial system in our country. Emergence of informal financefilled a gap between social funds need and social funds demand. Apart from that,significant meaning of informal finance is finance supporting in regions that are shortof finance, also satisfying funds need of Small and Medium Enterprises. In Jilinprovince what this thesis focus on, informal finance meaning is that informal financeservice farmers, agriculture and rural areas economy. Take this into consideration, wecan find that informal finance not only promotes economic growth, but also providesfinancial supports to rural modernization. Above all, researching and analyzing therelationship between informal finance and economic growth has significant meanings.Firstly, this thesis identified concept and form of informal finance, also analyzingcomparative advantages of informal finance contrast with formal finance.Secondly, this thesis adopted θ method that is indirect estimation method. Thisestimation method based on two hypotheses, one is that there is no informal finance infinancial developed regions; the other is that capital input-output proportion is same indifferent regions.Thirdly, the following works are empirical analyzing the result of estimation,studying co-integration relationship and causal relationship between informal financeand economic growth. Research shows that there is interaction within each others.Finally, this thesis gives suggestions to informal finance of Jilin province,including legalization, expanding capital resource, self-improvement andcharacterization of informal finance.