Research On The Relationship Between Banking Concentration And Economic Growth In Yunnan Province

Since 1980 s,the recurrence and spread of financial crises has brought great influ ence on the social and economic costs of developed and developing countries,which makes the financial industry become the focus of global attention,and the important p art of this is the central role of banks in the dynamics of national economic growth.C hanges in the structure of the banking industry not only affect the development of indi vidual banks,but also affect the growth of the overall economy.In turn,the economy can promote the adjustment of the market structure of banking industry.Yunnan economy has achieved great progress since the reform and opening up.As an important province of development of border finance,Yunnan province has been the subject of attention and support of the party and the government.In recent years,Western development strategy,Bridgehead construction,International financial center construction and Border financial reform demonstration area construction had brought many opportunities for the development of Yunnan economy.Clarifying the relationship between banking and economic development is helpful to the realization of the harmonious development of financial support for the economy,which is far-reaching.Based on this,this paper starts to research the relationship between banking industrial structure and economic growth in Yunnan province.Designed to achieve two basic objectives: First,by combing the current situation of economic and banking development,explore the relationship between the banking market structure and economic growth,especially to analyze the interaction between the two parts in the actual situation,and analyze the causes of the results;Second,combining with the empirical results,this paper puts forward the adjustment proposal that can fit the bank structure and economy in Yunnan Province,to match the banking structure with the economy,so as to form a healthy development model and promote the sustainable and efficient development.The main ideas and central contents of this paper include: Firstly,on the basis of combing the domestic and foreign research trends and related theories,we find out the breakthrough,build the research content and framework.Secondly,research on the domestic and foreign banking market structure comparatively,and analyze the current situation of Yunnan’s economy and banking industry,and then make a judgment on the market structure of Yunnan’s banking industry.Thirdly,we use the statistical data from 2000 to 2014 to study the relationship between banking concentration,competition and economic growth through econometric model,and to analyze the reasons.Finally,with reference to domestic and foreign related experience,this paper puts forward some policy suggestions for Yunnan province.The results obtained: Firstly,the banking market structure in Yunnan Province has shifted from high oligopoly to lower centralized oligopoly;Secondly,the degree of competition in the banking industry in Yunnan Province,the impact of changes in concentration is not significant;Thirdly,there is a long-term and stable negative correlation between concentration and economic growth,and in the long run,concentration has a one-way causality to economic growth.