Relationship Between Financial Development And Total Factor Productivity

One of the important points of the new classical economic growth theory is that the growth of total factor productivity is an important source of economic growth. Total factor productivity is a comprehensive reflection of the role of technological progress in economic development, and it is an important basis for the government to formulate long-term sustainable growth policy. But at present, our country's TFP level is not enough to support our country economy sustainable growth.Based on relevant theories and empirical studies, this paper analyzes the relationship between financial development and total factor productivity in Shandong province.Since the reform and opening up, Shandong's financial institutions, markets and service system has been developed, which has a profound impact on all aspects of social and economic life? As of 2012, the province's financing structure continues to optimize the scale of direct financing, the province's financial institutions RMB deposits increased by 615.4 times, the average annual growth rate of over twenty percent, the number of small loan companies reached 296, the company's branch of securities and insurance coverage to further expand the insurance depth by 0.1%and 0.5 yuan in 2012 rose to 2.3%in 1980, the insurance density rose from 0.5 yuan in 1980 to 1170 yuan.In recent years, with the rapid economic growth in Shandong, the Shandong financial system development is increasingly mature and perfect. But in contrast, the contribution rate of the total factor in Shandong's economic growth is not obvious, the growth rate of the total factor productivity growth rate is negative, the negative growth rate of technological progress is more obvious, but the technical efficiency is a trend of increasing year by year. At the same time, Shandong's independent innovation ability is not strong, the technical level is not high, the innovation results of the reality of the transformation ability and the transformation level is low, the financial development of enterprise innovation activities of support, In Shandong Province, it is urgent to develop a more suitable innovation policy, increase innovation investment, and improve the financing and legal environment.