Studon The Relationship Between The Financial Development And Regional Economic Growth In Ethnic Areas

Financial development on economic growth has a certain role in promotingeconomic growth, in turn, will promote financial development, and between them thereis a close relationship. Xiangxi is located in western Hunan province, is a place wherethe minority nations living together, which has a low level of economic and financialdevelopment. Meanwhile,there is big development disparity between cities and countieswithin the state.Therefore, the author of this thesis bases on the exist researches, takingXiangxi as the research object, to explore the relationship between financialdevelopment and economic growth in ethnic minority areas,and to provide referencesfor make policy of regional economic environment.The author tries to reveal the research trends as well as the correlation theory offinancial and economic development both at home and abroad. Analyze the economicaggregate, structure, financial scale and efficiency of Xiangxi by use a chart to tabulatethe data. and discuss the gap of development within the cities and counties in state bythe entropy. Consequently, the author gets the conclusion as follow from three indexdatum, which contain2001-2011GDP, deposits, loans.First, the conclusion got by theway of multiple linear regression equation which set up on the time series shows thatthe financial development of Xiangxi has a certain influence on the regional economicdevelopment, but the effect is not obvious.Second, the result of the panel dataco-integration test and error correction model shows that whether both long time orshort, the financial development is the cause of economic development in Xiangxi, onthe contrary, the economic development is the cause of financial development as well.To truly play the positive effects of financial factors in regional economicgrowth, narrow the regional economic gap, promote economic sustainable development,the author of the thesis suggests that we need set up some scientific and reasonablepolicies in region in accordance with the actual situation of Xiangxi. On the one hand,using the policy of adjustment, to improve the financial ecological environment. On theother hand, enhance the bank organization structure and financial services, promote thebalanced development of the financial industry, then get the aim of the financial andeconomic are highly interrelated and mutually reinforcing.