Research On The Impact Of Financial Development On Regional Economic Growth Under The Background Of Innovation-driven

Under the background of innovation-driven economic development,technological innovation is an important factor affecting economic growth and an important intermediary variable for financial development to affect economic growth.Therefore,the indirect impact of financial development on economic growth through technological innovation cannot be ignored.This paper puts financial development,technological innovation and economic growth in one framework to study whether financial development can promote economic growth and whether financial development can indirectly promote economic growth through technological innovation.Putting the three in one framework is a new way for scholars to study the effects of financial development on economic growth in recent years.This paper uses the empirical model to test the reality of the Yangtze River Economic Belt and provide a theoretical basis for the future development policy of the financial industry in the process of economic transformation to an innovation-driven development model.This is one of the key issues in the current economic and financial fields.It is also a hot spot of government concern,so the research in this paper has practical significance.In terms of research methods,this paper first analyzes whether financial development can promote and indirectly promote economic growth from the perspective of action mechanism based on basic theories and existing research results.Then,using Granger causality test,impulse response function and variance decomposition of panel vector autoregressive(PVAR)model to test whether actual situation of the Yangtze River Economic Belt is consistent with the theoretical analysis.The panel vector autoregressive(PVAR)model can meet the research requirements of this paper.The relationship between the variables in this paper is endogenous,and the model allows both the endogenous variables and the heterogeneity of different individuals.This paper uses three indicators to measure changes in three aspects of financial development.The measure of scale expansion is the ratio of financial assets to GDP.Financial assets are the sum of bank deposits and loans balances and stock financing amounts.The measure of efficiency improvement is the ratio of bank loan balance to the balance of bank deposits.A well-structured measure is the ratio of stock financing to financial assets.This paper uses the number of patent applications to measure the level of technological innovation output and use GDP to measure economic growth.Provincial panel data of Yangtze River Economic Belt are derived from 11 provincial zoning in the 2003-2017.The analysis result of the mechanism of action is that,in theory,the scale,efficiency and structural improvement of financial development all can promote economic growth,and can also promote economic growth indirectly through technological innovation.With the endogenous economic growth theory,financial deepening theory,financial function theory,technological innovation theory and the research results of many scholars such as Pagano,Levine and Jia Junsheng,this paper summarizes the role of financial development in promoting economic growth and technological innovation,and the process and the process of the technological innovation contributes to economic growth.Although theoretically three changes in financial development will directly and indirectly promote economic growth,whether the Yangtze River Economic Belt is so in reality requires empirical testing.Therefore,this paper proposes three research hypotheses and tests the theoretical analysis results with the help of the PVAR model.Hypothesis 1 is that the expansion of the financial scale of the Yangtze River Economic Belt will promote economic growth,and will also promote economic growth through technological innovation.Hypothesis 2 is that the financial efficiency of the Yangtze River Economic Belt will promote economic growth,it will also promote economic growth through technological innovation.Hypothesis 3 is that perfecting the financial structure of the Yangtze River Economic Belt will promote economic growth and indirectly promote economic growth through technological innovation.The empirical test results of the PVAR model show that the financial efficiency and the improvement of financial structure of the Yangtze River Economic Belt can promote economic growth,and can also promote economic growth indirectly through technological innovation.However,the expansion of the financial scale of the Yangtze River Economic Belt cannot promote economic growth,nor can it promote technological innovation and thus has no indirect effect on economic growth.This shows that in the process of economic development driving to innovation-driven,the financial development of the Yangtze River Economic Belt should pay more attention to efficiency improvement and improvement of direct financing methods,improve the quality and efficiency of financial services,rather than expand the scale of finance.Based on this,the paper puts forward three suggestions,namely,improving the direct financing method,improving the efficiency of the financial industry service,and guiding the resources to business entities.In terms of innovation,this paper draws on the new ideas of analysis of finance and economy in recent years,and puts financial development,technological innovation and economic growth in the same framework,and on the basis of this,some innovations are carried out.First,it examines the level of financial development from the aspects of financial scale expansion,efficiency improvement and structural improvement;secondly,the Yangtze River Economic Belt is the research area;and third,this paper combs the process of the financial development to promote economic growth and the process of the financial development to indirectly promote economic growth through technological innovation.