Financial Development And Economic Growth In Henan Province Based On Spatial Econometrics Model

The development of the financial industry has a significant role in promoting economic growth,but most scholars rarely consider the influence of spatial factors when studying the relationship between the development of the financial industry and economic growth.Spatial econometrics is a theory that studies the influence of spatial geographical dis-tribution on economic phenomena.It plays an increasingly important role in economic theory and applied research.In this paper,the spatial econometrics model is used to study the relationship between economic growth and financial industry development in Henan Province.Firstly,the theory of spatial econometrics is used to construct the theoretical frame-work of the factors affecting economic growth from the control variables such as human capital input,material capital investment,and innovation level.Then we use the panel data and spatial econometric models of 17 cities in Henan Province from 2005 to 2015 to em-pirically analyze the relationship between economic growth and financial industry develop-ment.Through comparative analysis,we can obtain the spatial distribution characteristics of financial industry development and economic growth in Henan Province.Finally,using the spatial lag model to analyze the elastic coefficients of each explanatory variable year by year and study the working mechanism of each variable.Through the analysis of panel data in Henan Province,the following conclusions can be drawn:The spatial lag model in this paper is more suitable for studying the relation-ship between financial industry development and economic growth;Economic growth and financial development have spatial agglomeration and similar spatial distribution;The de-velopment of the financial industry has obvious effects on economic growth.This has a significant spatial spillover effect on economic growth;The contribution of human capi-tal investment to economic growth has become less and less;The role of material capital investment and innovation in the promotion of economic growth has steadily increased.