| Economic growth has been the core issue of macroeconomic research, a country’s social development as well as the improvement of people’s living standard ultimately depends on the sustained and healthy economic growth. Financial economy emerges along with the rapid development of the real economy, and, in turn, has a big impact on the real economy. With the continuous innovation of the finance and the continuous improvement of financial system, financial has become an important tool of government macroeconomic control and an important lever of social resources optimization allocation, it plays a more important role in promoting modern economic growth. The empirical researches on "The effect of financial development to economic growth" effects long-lasting at home and abroad, as fellow researchers have differences in index selection, model setting, research methods, etc, the conclusion is not consistent, There are big differences.This paper, firstly, systematically sorts the role of theory of financial development on economic growth, then, based on the current situation of China’s economic and financial development, makes a empirical research on the relationship of them in use of the data of period1978-2012of28regions. In the analysis, this study puts real per capita income as a threshold variable, then using nonlinear dynamic panel threshold regression models tested the interaction effect between the financial development and economic growth. The results showed that, a threshold effect exists between financial development and economic growth in our country, only in regions with high per capita income level, the financial development has a significant role in promoting economic growth, and in areas with low per capita income level, the financial development does not have an obvious effect on economic growth, even produces a certain degree of negative impact on economic growth. Based on this, the study gives the corresponding policy recommendations. |
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