The Empirical Analysis Of Anhui Economic Growth And Financial Development

Country’s economic growth is related to the prosperity, social stability and people’s lives.Constantly exploring what factors promote economic growth,and how these factors well serve economic growth have been the topics of economists.As the core of the economy,finance casts more important influence on allocation of social resources.On the supporting role of financial development on economic growth,domestic and foreign research mostly has been confirmed,however these results are generally limited to states, and based on in-depth study of an area as individuals rarely.China’s vast territory, inter-regional differences are significant,each region has its own uniqueneses and superiorities.It makes huge difference among economic growth,finiancial development and mechanism.In terms of Anhui Province,as a less developed central provinces,copying the theory of developed countries or overall situation of china is unreasonable apparently. We should concentrate on the study the relationship between economic growth and financial development, and analyze the advantages and disadvantages of financial development, which has important practical significance of promoting economic growth and financial develpment,and improving the status of Anhui province, equally has effective theoretical significance of enriching the empirical study on regional economic growth and financial development in China.This paper is divided into five part,the first part is the introduction of this article,briefly describing the background and significance of the theme, the status of domestic and foreign economic growth and research methods,innovation and insignificance.The second part,as a theoretical support of this article,is detailly descripting the evolution process and theoretical relationship and mechanism of economic growth and financial development.The third part is outlining the status of Anhui economic growth and financial development,based on the reality of the current situation,contributing to empirical analysis and corresponding suggesttion.The fourth part is the empirical content of this article,based on the building of related index and actual situation of Anhui province,selecting the appropriate indicators of economic growth and financial development:R, indicating real economic growth to reflect economic growth;F reflecting financial development indicators,S the level of capital market depth and I the level of insurance market development.Then the paper is conducting econometric analysis,correlation test and regression equation of selected indicators using EVIEWS6.0,pointing out the correlated relationship between financial indicators and economic growth. Concluding that there is a two-way relationship between economic growth and capital markets,based on the Granger causality test,however one-way relationship between economic growth and the insurance markets.The fifth part is proposing policy recommendations on Anhui’s economic growth and financial development in terms of banking,capital markets,stocks,insurance and so on.