Research On The Impact Of Local Financial Development On Economic Growth In Yunnan Province

Since the reform and opening up in 1978,China's economy growed rapidly and was widely praised by the international community.However,China's economy faces some new situations in the new normal state of economic development,Where is China's new growth engine? We can see that the local county economy will become the engine to support the next economic growth whether from scale or cost advantages and accelerating urbanization process.Yunnan province is a fully open province,Its economy growed rapidly before and will enjoy huge development potential in the future with its unique geographical location and resource advantage.However,Yunnan's financial and economic development level is relatively backward and the regional financial development and economic development are unbalanced as a relatively backward region of Western China.Therefore,the research on the relationship between the local financial development and economic growth in Yunnan province is very important for exploring the coordinated development of local economy.This paper summarized research findings of related literature about the development of domestic and international financial and economic growth,analyzed the current status of local finance and economic development in Yunnan province firstly;Used economic growth and financial economic indicators to make an empirical analysis of the relationship between financial development and economic growth according to the theory of economic growth secondly;And then took Qujing city as a sample to research the relationship between financial development andeconomic growth furtherly,explored the local financial development path from the macro to the micro depth,tried to solve the imbalance problem of local financial development and economic growth and found out the development short board;Made clear the new situation and challenges that Yunnan province is facing at present through the empirical analysis and conclusion and put forward measures that the people's livelihood financial,innovation financial and financial responsibility government should take,such as promoting the competitiveness of county finance in Yunnan Province,speeding up the innovation of rural financial products and service mode,improving the county economy and financial ecological environment of Yunnan province and so on.The following conclusions are drawn through analysis,1.It showed that the level of local economic development in Yunnan province is positively related to the development of the financial industry according to the empirical analysis on the relationship between local financial development and economic growth in Yunnan province.However,the regional economic growth is obviously different,there is a big gap between backward areas and developed areas.The financial development is slowly compared with economic growth and local economic growth is restricted by the level of financial development.2.It is found that the financial institution has a leading role in the region economy,the local medium and small financial institutions can drive the first industry and the second industry as well as promoting the economic development of the region according to the empirical analysis on the relationship between local financial development and economic growth of Qujing city.3.An empirical study on financial development and economic growth of Fuyuancounty in Qujing city showwed that Fuyuan County did not enter the stage of interaction between financial development and economic growth and need a long-term practice to realize the interaction between the two phases.Based on the above research,the demand for financial service in underdeveloped areas is not high,the financial service can not support economic growth,mutual promotion can be realized in developed areas.The suggestions mainly on the financial competitiveness,innovation of financial products and services,financial and economic environment and other aspects to achieve sustained and healthy development of financial development and economic growth in Yunnan province.The county economy is the basic unit of the national economy and important basis for the local economy,so the fast development of county economy plays an important role in promoting common development,narrowing the regional differences and realizing the coordinated development of different regions in Yunnan province.