Suzhou Financial Convergence And Jiangsu Province Regional Economic Growth Research

Along with the rapid development of economic globalization and the popularity of network communication techaology,modern financial industry as a pillar industry of the economy,shows the importance which can not be ignored in the social and economic growth.The combining of industrial convergence,economies of scale,high financial liquidity,information asymmetry and other factors,lead to varying degrees of financial convergence develop.Finally,it would become the financial center.Financial convergence leads to regional economic growth,which can be expressed as agglomeration effects,functional effects,radiation effects,spillover effects,and so on.Because of the strengthening of the degree of financial convergence,the financial industry,which was accompanied by the traditional industry has gradually become a pillar industry of the modern economy.However,in Jiangsu province,whether there is a higher degree of financial convergence city,which can make the regional economic growth possible?In 2013,Suzhou accounted for 13.3 percent of the population of Jiangsu Province,and 22.1 percent of GDP in Jiangsu Province,which ranked first in the province.Suzhou financial institutions' deposits accounted for 28.74 percent of Jiangsu Province,and the loans accounted for 28.06%.Therefore,Suzhou is the best choice for the financial center of the city.Suzhou financial convergence research makes a big deal to the economic growth,which would achieve coordinated economic development of the province in the most stable way.This research discusses Suzhou financial convergence,trying to explore the financial convergence and regional economic growth relationship between Suzhou and the rest 12 cities of Jiangsu Province.Firstly,after reviewing the relevant literature,the research makes the theoretical analysis and hypotheses of the relationship between financial convergence and regional economic growth.Secondly,describe the financial convergence situation in Suzhou about ten years.Gather the relevant data and process them.Then,use Eviews6.0 software to do the positive test.According to the relevant data of Suzhou City and the rest 12 cities in Jiangsu province,I do ADF test,cointegration test,Granger causality test,explore the financial convergence in Suzhou which would make the other regions of the cities' economicgrowth.Finally,analyze them respectively in capital accumulation,techaological progress to find the financial convergence effecting ways on regional economic growth,in order to test the former two hypothesis.Through theoretical analysis and positive test,I finally do the summaries.On the basis of the former text,I integrates the current financial and economic developments in Suzhou,and raise five policy recommendations: First,make Suzhou become the financial center in Jiangsu Province.Second,accelerate the introduction of financial talent.Third,strength financial market system.Forth,improve relevant laws and regulations.