A Study On Relationship Between County Financial Development And County Economic Transformation

As an important component and the basic unit of national economy,county economy is of great significance to promote the development of regional and national economy.Hubei is one of the major provinces of economy in China,while its county financial scale and efficiency do not match the level of economic development in county.The development of county finance has a vital role in the study of county economic transition.Therefore,the study of the relationship between county financial development and county economic transformation in Hubei Province has important practical significance for exploring the coordinated and coordinated development of Hubei's regional economy.On the basis of sorting out the existing research literature,this paper finds that there is relatively little research on the relationship between county financial development and county economic transition.Therefore,this paper presupposes county finance in the existing theory of county financial development and county economic growth.Development has a significant role in promoting the transformation of the county economy.First,it analyzes the status quo of county finance and county economic development in Hubei Province.Second,it takes 37 counties(cities)in Hubei Province as samples,and divides them into three parts: eastern,central and western section according to geographical location,using data from 2008 to 2017.Through statistical analysis and construction of a panel data model,an empirical study was conducted on the relationship between county financial development and county economic transition.In the empirical analysis process,the total amount of deposits at the end of the year,total year-end financial institution loans,and capital utilization efficiency were selected as explanatory variables.The changes in the transformation of the county economy are explained variables.Statistical analysis,panel data and other methods are used for data analysis.After a series of model comparisons and tests,it is found that the fixed effect model has better explanatory power and degree of fitting to the model data.The results of the study show that the county financial scale and financial efficiency in Hubei Province are in an imbalanced state,and the imbalance in financial scale is more prominent.The gap between the scale of development and the financial efficiency of the Central Hubei,East Hubei,and Western Hubei has continued to widen.In addition,it has been found that the expansion of county financial scale and the improvement of county financial efficiency can promote county economic restructuring.In view of the problems existing in the county economic restructuring in Hubei Province,this paper puts forward some countermeasures and suggestions in order to promote the common development of county finance and county economy in Hubei Province,narrow the differences between regions,and achieve a successful transition of county economy in Hubei Province.