The Study On The Influence Of Regional Banking Development On Economic Growth

The influence of regional banking development on economic growth is the focus on one of the problems in the financial sector.The index of regional banking development is the key factor to measure the accurately relationship between regional banking development and economic growth.From the new normal economic to the four changed simultaneously measures in financial sector,the banking industry is facing with the complicated business environment,the more challenging and the urgency of transformation.Therefore,the research of relationship between regional banking development and economic growth is order to promote the coordinated development of the banking and economic growth,and comes up with the corresponding suggestions for regional banking reform direction.The research object of the paper is the relationship between regional banking development and economic growth.Based on the fixed effect model and fixed effect variable coefficient of the model test,the paper research the relationship between banking development and economic growth to promote the coordinated development of both.Firstly,the paper combed the index system of the banking,the relationship between the banking development and economic growth.From the banking macro environment,the current development of the banking and the analysis of economic growth,the paper analyzes the influence of regional banking on the economic growth.Secondly,the paper designs the indicators of banking development index,using logistic model to eliminate the problem of the banking and the economic growth,which based on the corresponding stage of economic development,and carries on the comparison research of regional banking development and economic growth.Thirdly,the paper constructs the fixed effects model,carried on the related test of panel data model.Using LSDV correction coefficient method to estimate fixed effects model,the paper uses fixed effect model with variable coefficients to analyze the east influence of the banking development on economic growth.Finally,based on the empirical results,from the adjustment of regional banking structure,the deepening of the banking sector and the macro economic reform,the paper comes up with some suggestions to promote the coordinated development of the regional banking and economic growth.