Research On The Dynamic Relationship Among Financial Development,Technological Innovation And Economic Growth

In recent years,all regions in China have achieved rapid development in finance,technology and economy,and people’s living standards have been greatly improved.However,during the period,the problems of serious unbalanced development,between different regions of our country have also been revealed.On the one hand,due to the unbalanced resource allocation in terms of finance,technology and economy.On the other hand,due to the geographical location and national policy tendencies.These two reasons lead to different regions undergoing different development processes and creating regional differences on the relationship among financial development,technological innovation and economic growth.Based on the theories of financial development,technological innovation,economic growth and the interaction mechanism of the three,this paper conducts an empirical research on the relationship among financial development,technological innovation and economic growth in three major regions:eastern China,central China and western China.The relationship among financial development,technological innovation and economic growth and their differences are of great theoretical and practical significance for us to coordinate the balanced development of financial development,technological innovation and economic growth in different regions and promote regional balanced development.Firstly,the article expounds the theories of financial development,technological innovation and economic growth and the interaction mechanism of the three,laying a theoretical foundation for this article.Secondly,this paper analyzes and compares the status of financial development,technological innovation and economic growth in the three major areas:eastern China,central China and western China,and draws the current situation and the existing gaps in various regions of our country.Thirdly,based on the data of 2000-2015,we conduct the test of stability,cointegration test,build the VAR model of financial development,technological innovation and economic growth in the three major regions,and conduct Granger causality test,impulse response analysis and variance decomposition to analyze their own dynamic relationship among financial development,technological innovation and economic growth in the regions.The empirical results show that there is a"supply-oriented"relationship between financial development,technological innovation and economic growth in the eastern region.While financial development and technological innovation promote each other,they also have a great impetus to economic growth.Financial development and economic growth in the central region are strong"mutual promotion"relations,and financial development has a catalytic effect on technological innovation.However,the relationship between financial development,technological innovation and economic growth in the western region is a"demand-following"type.That is,economic growth drives financial development and technological innovation,while financial development and technological innovation lag behind economic growth.Finally,based on the empirical results,the article puts forward relevant policy suggestions on the three areas of economic growth,technological innovation and financial development in the hope of narrowing the development gap between different regions.