The Empirical Analyze Of Financial Resource Allocation And Economic Growth Relations

The relationship between financial and economic has always been the key point of research by scholars at home and abroad. With the increasingly deepening of the contemporary economic financialization, finance is becoming the important factor which affect economic development but not be ignored. so the attribution of the financial resource is gradually revealed. At the same time, our country is in a critical period of deepening reform.The study on the relationship between financial resources allocation and the economic growth, not only can enrich and perfect the related theory of economic growth about financial resource allocation,but also improve the coordination between the financial resource allocation and economic growth in China,to improve the level of economic development.So this study has important practical significance.On the basis of existing literature, this paper constructed the index system to measure the financial allocation of resources and economic growth. In the empirical part,the paper analyze the relationship between financial resource allocation and economic growth from the two different viewpoint of the integrity and regional First of all,cointegration test and granger causality test are made inspection by using the time series data from 1992 to 2013 of our country.Then in order to getting further understanding about the regional differences relationship between the financial resources allocation and economic growth,the paper set up variable intercept model which has fixed effect,by using panel datas from 1999 to 2012 of the eastern, the central and the western regions in China.Through the empirical analysis above, there follows three conclusions.Firstly, there exists long-term stable cointegration relationship between the financial resource allocation and economic growth of our county.Secondly, the results of the granger causality between the indexes of financial deepening or financial market development and economic growth has the one-way and positive effect.Financial openness and economic growth are in two-way granger causality.The results of between financial intermediary development indexes and economic growth is the granger causality of the negative effect.Thirdly, the way of effects on economic growth of the regional financial resource allocation consist with effects our overall country.The spontaneity difference of regional economic growth is not big and the financial resources allocationthe of the central area devotes most to the spontaneous growth.