Research On The Impact Of China's Financial Development On County Economic Growth

County economy plays an important role in China's economic development.The factor input,resource allocation,and information exchange involved in county economic development are closely related to financial development.Therefore,county economic growth needs the support of financial development.However,there are some problems in the process of financial development promoting county economic growth,such as the mismatch between county economic growth,the imbalance between financial development counties,and the inefficient allocation of financial resources.Therefore,investigating the impact of China's financial development on county economic growth,and exploring the specific forms of its economic growth effect is of great significance to promote the healthy and rapid growth of county economy and the balanced development of different counties.This paper mainly studies the impact mechanism of financial development on county economic growth.First of all,combing and summarizing the relevant research on financial development measurement,regional differences and different economic growth effects of financial development,and clarifying the purpose of analyzing the nonlinear economic growth effect of financial development by constructing comprehensive indicators of county financial development,and putting forward relevant research hypothesis on the basis of theory.Secondly,according to the average economic and financial development indicators(including GDP,government revenue,expenditure,financial scale,financial density,etc.)of 1959 counties in China from 2006 to 2010,the non-linear growth of county finance to the economy is preliminarily derived.Then,considering the financial depth,financial width and financial development environment,construct the comprehensive evaluation index of financial development level,and use the entropy weight TOPSIS method to calculate the county financial development index,and further analyze the individual county.Finally,the dynamic panel model and the System GMM estimation method are used to empirically analyze the impact of financial development on the economic growth of China's county and different economic levels and the existence of corresponding optimal financial values.The research findings indicate that:(1)Financial development has a significant role in promoting county economic growth,but this effect is non-linear,and the specific performance is inverted U-shaped.From the county overall perspective,when the county financial development index is less than the optimal value,increasing financial support can promote county economic growth.After exceeding the optimal value,blindly increasing financial support will have an adverse impact on the county economy.(2)Based on the annual average financial development index,the level of county financial development is generally at a medium level,and it is polarized in space.There is a high degree of spatial fit between county financial development and economic growth.The financial development index of the county with the highest level of financial development is close to 0.4,and it is located in the eastern coastal area;the financial development index of the county with the lowest level of financial development is only about 0.003,which is basically located in the western part of China.(3)The promotion of county-level financial development in developed,medium and underdeveloped counties in China is also in the form of “U”,but the optimal value of financial development index is different,and the optimal financial development in developed,medium and underdeveloped counties is successively decreasing.At present,some developed counties are already on the right side of the optimal value,and all medium and underdeveloped counties have smaller financial development indexes than their corresponding optimal values,that is,they are located on the left side of the optimal value,and increasing financial support can promote non-Developed county economy growth.