Research On The Effect Of The Financial Structure Evolution On Economic Development In Guangxi

With the advance of the country’s financial reform process, Guangxi financial structure has been evolving. For practical and theoretical significance, this paper discusses the evolution of Guangxi financial structure can meet the needs of economic development or not. Therefore, this paper which is based on the perspective of the evolution analyzes the effect of the evolution of financial structure on economic development in Guangxi.Firstly, this paper’s theoretical basis is enriched through summarizing the connotation of financial structure and its analytical method. Moreover, analyzing the effect of financial structure’s evolution on economic development further. Secondly, this paper analyzes the situation of Guangxi economic development, diversified evolution of financial structure, and the evolution which bank-dominated financial structure turned to market-dominated financial structure. Moreover, elaborating the current situation of the formal financial sector, including banking, securities and insurance industries. Finally, by empirical analysis, this paper discuss the effect of the financial structure’s diversified evolution and the trend of market-dominated evolution. The results show that: First, with the advance of the financial structure diversified evolution, the effect of the banking structure on regional economic development from strong to weak. Second, in the multivariate financial structure background, the securities industry in guangxi has failed to promote economic growth. Third, the evolution of insurance industry did not play a significant role in promoting regional economic development. Fourth, In the long term, the trend of bank-dominated financial structure turned to market-dominated financial structure is unable to continue to promote economic growth. The expansion of the market and the development of direct financing activities has not been able to play better role than bank-dominated financial structure to promote economic development. Thus, this paper make some policy suggestions about perfecting the financial system, improving the financial supervision mechanism, strengthening financial cooperation and expanding innovation, for optimizing financial, promoting financial ecological construction and promoting Guangxi economic growth.