On Regional Economic Development Based On The Financial Support

Our country has a vast territory. With different geography position、natural endowment and development history, each area forms various industrial structures and financial distribution, which lead to different regional economic development level. After the reform and opening, along with the rapid economic development is the unbalanced economic development in economy transitional period of China. Financial resources are becoming more and more regional agglomeratic. The social problems that coming from unbalanced economic development have always been an issue deserves attention, such as population jam and environmental pollution in big cities、peasant workers’social adaptation、 the education of left-behind children. These seriously restrain the sustainable development of economy, and affect the construction of socialistic harmonious society. With the acceleration of economic financialization, finance is more and more important in economy. As a result, it has theoretical significance and practical effect to reveal the origin of unbalanced economic development from the perspective of financial deepening.Finance is the economic engine, for it links the demand and supply of capital, has functions of distributing and financing. Based on the theory of regional economic growth and financial deepening, this paper analyzes the relationship between finance and economy, and describes current situation of regional finance and regional economy. Regarding development index of regional economy as dependent variable, and development index of regional finance as independent variable, we build a panel data model to study the efficiency of financial support on the economy. Based on the theoretical framework, and taking relative index of the seven areas (2000-2010)as the research object, we finally choose gross domestic product、loan balance、total market values of the listed companies and premium income of seven areas to analyze.The results show that:generally speaking, regional finance has a positive effect on the regional economy; there is a robust positive link between loan balance and economic growth, whereas stock market and insurance market do not have a significant impact on economic growth; there is a more significant effect in the more developed regions than that in underdeveloped areas. By empirical results, this paper put forward some policies and measures from the perspective of banking、 stock market and insurance market.Rational allocation of the financial resoures can lead to reasonable flow of actual resources, so as to balance fairness and efficiency of economic growth.