Research On The Relationship Between Financial Development And Economic Growth In Zhejiang

As a service industry,financial industry not only provides convenience for production and life,but also is an important part of capital formation and resource allocation.In China,the scope of the financial industry,including banking,securities,insurance,trust,etc..As a sub industry of capital intensive knowledge in the service industry,financial industry not only promotes the economic growth directly,but also promotes the capital accumulation and resource allocation of the whole society.Therefore,the financial industry as the driving force of economic development,the need to build the overall quality of service,the full play of the engine of the financial industry.In recent years,Zhejiang Province,with the support of national policies and strong economic and financial basis,the financial industry has developed rapidly,the total assets of the rapid growth,the scale effect,the strength of the financial institutions have made great progress.The financial industry is the core industry of Zhejiang Province,and its promoting effect on economic growth is self-evident.However,there are still some obstacles in the financial industry in Zhejiang.Such as the financial sector in the overall proportion of GDP is still relatively low,did not play a leading role,these problems need to be resolved.Therefore,based on the current situation in Zhejiang province and the financial development,to discover and solve problems as the guide,based on the theory of financial development,the theory of economic growth and financial development and economic growth theory,through the analysis of panel data model of Zhejiang Province financial development promote or impede the growth of economic,the factors affecting economic growth and using the time series model of Zhejiang financial development contribution to economic growth from the perspective of economic growth,financial analysis from the perspective of financial development,the factors affecting economic growth.And then put forward policies and suggestions to promote the financial development of Zhejiang province.Firstly,this paper reviews the theories related to the economic growth and financial development,and review of the literature on the relationship between financial development and economic growth are summarized,found that the current research on the relationship between financial development and economic growth,most of the empirical analysis based on the perspective of the national provinces,analysis of financial development and economic growth based on relatively little literature.Zhejiang province is a developed province in the East,so it is of great theoretical and practical significance to study the effect of financial development on economic growth in Zhejiang province.Secondly,the use of panel data model to analyze the role of financial development in Zhejiang province to promote or hinder economic growth.It is concluded that the financial development of Zhejiang hinders economic growth.At the same time,the use of Cobb Douglas production function,from the perspective of economic growth,the source of economic growth for the subdivision of TFP and capital accumulation,to further explore the way of Zhejiang financial development hinder economic growth.Through the analysis of panel data,concluded that Zhejiang Province financial development has hindered the improvement of total factor productivity and hinder economic growth;Zhejiang Province financial development through capital accumulation,to promote economic growth.Thirdly,in order to study the Zhejiang Province financial development and the contribution to economic growth,this paper from the two aspects of the financial contribution rate and financial contribution,effect of financial industry on the economic development of Zhejiang Province,Zhejiang province and through the analysis of the pulling effect of financial development on the economy,from 2012 to 2014,Zhejiang Province financial development below the national level of the pulling effect on economic growth,financial development trend of decline in the contribution to the economic growth present.In order to analyze the reason of 2012 to 2014 of Zhejiang Province financial development trend of decline in the contribution to the economic growth of the 1993-2014 sample interval,on the basis of successful scholars,from the view of financial development,financial development and selection of financial ratio and loan deposit ratio representing the financial scale and financial efficiency,the application of time series VAR model analysis of financial scale and financial structure on economic growth contribution respectively.The empirical results show that the efficiency of Zhejiang Province financial contribution to economic growth relative to the size of the financial contribution to economic growth is low,therefore,the play of Zhejiang Province financial development to promote economic growth,in addition to pay attention to the financial scale,more emphasis on the promotion of financial efficiency.Finally,according to the empirical results of fixed effect panel data model and time series VAR model,in order to improve the efficiency of capital allocation and build a multi-level financial market system,to accelerate the pace of innovation,the financial industry focus on the four aspects of financial talents,to promote Zhejiang Province financial development play a role in promoting economic growth,put forward policy recommendations.