A Study On The Relations Of Financial Development And Economic Growth From The Perspective Of County

At present, China’s economic and social development is in growth speed shifting period, structural adjustment pains period, the preliminary policy digestion period. That is the period of "three period superimposed" transition. As a cornerstone of regional development and the key of connecting national economic system, the county economy is the support of economic transformation and upgrading in the "new normal". In general, the county economic development level in China is relatively low and the regional development is also unbalanced. Meanwhile, the county economy can not get effective financial support. The emergence of various problems in county economy weakens the county economic development severely. Eventually, it will hinder the development of the overall economy in a certain extent. The county finance is the main financing channels for the development of county economy. As an important resource allocation mechanism of county, the county finance can provide financial support for the development of county economy. It is very important for the development of county economy.In this paper, using the relatively backward regions of development in Shandong province — Liaocheng City, 8 counties(cities, areas) as an example, analyze county economic development situation and the county financial resources of Liaocheng city, construct the county economic growth and the county financial theory model, select the quantitative indicators, study empirically the relationship between county financial development and county economic growth with the panel data of Liaocheng City from 2009 to 2013. The result shows that county financial development scale of Liaocheng city plays a significantly negative role in promoting the growth of the county economy. The county financial development efficiency shows a significantly positive correlation to the growth of the county economy. Meanwhile, the county fiscal expenditure rate of county economic growth shows a significant negative correlation. Moreover, the amount of completed investment in fixed assets per capita plays a significantly positive role in promoting the growth of the county economy. In addition, the second industry accounted for the proportion of GDP shows a significant negative correlation to the growth of the county economy. Through the analysis above, taking the Liaocheng city as the typical relatively backward regions of development in province, put forward the following countermeasures: first, we should expand the county financial services and strengthen the county financial innovation; second, we should optimize financial ecological environment and standardize the financing; third, we should perfect the county financial organization and service system and increase financial supply; fourth, expand the direct financing scale of the county and accelerate the pace of business listed; fifth, we should create a good service environment and stimulate the economic vitality of the county. Through the above recommendations make the county finance and the county economy of less developed area achieved balanced development, and create upgrade edition of the county finance and the county economy.