Empirical Study On The Regional Financial Development And Real Economy Growth

Since China has become the second largest economy in the world,it is facing greater challenges and opportunities.It is necessary to improve finncial competitiveness and develop Chinese financial industry.At present,Chinese financial industry has been lagged behind those developed country and the regional financial development is not balanced.It is meaningful to study the regional financial system and analyze the trend of the development of regional financial development.It will be of great help to coordinate the regional finance development and provide guidance about how finance support and serve the regional real economy.Therefore,under the framework of the existing regional financial development evaluation standard,this paper construct an index system including four dimensions which are financial structure,financial deepening,financial ecology and financial scale.By using the princple component analysis,this paper calculates the financial development index of 30 provinces during 2007-2016(exclude Tibet)and analysis the indexBased on the panel data of 30 provinces from 2007 to 2016,this paper empirically examines the impact of regional financial development on the real economy after controlling for capital and labor factors and finds that:(1)Financial development hinders the development of the real economy;(2)This paper divides 30 provinces into three parts:east,middle and west parts.The impact of regional finance on the real economy is different.The empirical results show that the financial development has a greater impediment to the development of the real economy in the eastern region than to the western region Based on this,this paper puts forward some advice on how the regional finance promote the real economy and how to solve the problem about incoordination of regional financial development.