Research On The Correlation Of Economy And Finance In Jiangxi Province From The Perspective Of Industry Conduction

It’s been a long time that research on the relationship of finance and economy focuses on the two ends of this relationship, which are finance and economy themselves. However, for this relationship, neglecting whatever it is, is there a socalled ―bridge‖ associating them indirectly in addition to the direct link between them? ―Industry‖ attracts my attention after my thorough thought and study. Through industry, does finance provide more support to economic growth or inhibit economic growth instead? Meanwhile, what is the situation of the related industries’ development going to be considering financial external intervention? This article is intended to explore these problems.According to the status of the financial and economic development in Jiangxi Province, firstly, this paper is intended to explore the relationship between finance and the overall economy. Afterwards, the study goes on on the base of the association between finance and the three major industries and the related specific industries such as food industry, steel industry, automobile industry and electronic information industry. So the influence of industries as the transmission channel on the relationship between finance and economy is empirically researched through the growth equation model, the panel data model and the time series analysis, judging the positive or negative effects on the economic development from finance to industry. Additionally, as to financial external intervention on the development of industry, the paper is going to discuss the spillover effects of the financial industry on other industries, economy of scale, the domestic interest rates’ impact on industries, trade openness’ influence on industries and the exchange rate policy’s impact on industries by constructing the VAR model and the impulse response function.In all, nowadays, Jiangxi’s financial development which is insufficient is far from the optimal level of development. Finance should give full support to the primary sector in Ji’an, Yichun and Fuzhou. Financial resources could be used to support the secondary industry in Xinyu, Ji’an, Yichun and Fuzhou. It is to be emphasized that the optimization of financial structure plays a good role in promoting the tertiary industry’s restructuring. What’s more, considerable financial support should be given to food industry and automobile industry while financial support given to steel industry and electronic information industry should be limited.