The Relationship Between Financial Structure And Economic Growth In Shandong Province

As we all know,structure determines function.The institutional structure of social system greatly affects the function and utility of social system.Similarly,for the financial system of a country or region,its financial structure changes greatly affect the local economic growth speed and quality.The matter of what kind of financial structure can provide the most effective support and service for economic development has always been a subject,which the academia has been scrambling to study.The existing research results show that the financial structure matching with economic development has a positive effect on economic growth.In the area of regional research,the studying about the relevant of financial structure and economic growth is few.The current research mostly confined to the regional financial development and economic growth,the analysis and research about the financial structure is very rare.Shandong province's economic scale,development speed and internal quality are all in the forefront of the country,however,the development of Shandong's financial industry lags behind the economic development.And the financial development has not become a strong support of economic growth.With the supply-side structural reform steadily advancing,the financial structural ills of Shandong province are increasingly prominent.And the problem of the financial structure behind the phenomenon is worth pondering.Based on the shortcomings of existing research,combined with banking,securities,insurance and other financial structural elements,the paper comprehensively examines the relationship between the financial structure and economic growth of Shandong in different periods.Firstly,this paper combed the relevant theories and literatures at home and abroad,and summarized the shortcomings of the current research on the correlation between financial structure and economic growth.Secondly,this paper analyzed the conduction mechanism of the economic growth of financial structure based on the relevant theoretical basis of financial structure.On this basis,we analyzed the present situation of financial structure and economic growth in Shandong Province.Then,combining theory and actuality research,we designed Shandong province financial Structure Index appraisal System.And we used the factor analysis method to output three financial structure factor including "total structure factor","financing structure factor","efficiency structure factor".And we unified the economic growth to carry on the Cointegration Test,VECM,the impulse response and so on a series of analysis,so that the research could study the relationship and lag effect of Shandong financial structure and economic growth.In the process of empirical research,this paper found that the correlation of different financial structure factors and economic growth is not the same in different periods of economic growth.So the article conducted further exploration and research aiming to find reasons behind this phenomenon.At last,we got the following conclusions:First,for the total financial scale,it has a positive correlation with economic growth in the short term and negatively correlated with economic growth in the long run.Secondly,the direct financing ratio and financial efficiency are both positive correlated with economic growth in the short term and long term.Third,in the short term,the greater the size of banks,securities and insurance,the more it can promote economic growth.Forth,in the long run,the growth of securities and insurance business will bring about sustained economic growth,but the effect of banking on economic growth will show a clear limit.In particular,when economic growth enters the tertiary sector-dominated stage and the bank loans have increased to a larger scale,then the continued scale expansion will inhibit economic growth,and the inhibition will be greater than the security and insurance's promotion to economic growth in the long-term.Fifth,with the passage of time,the promotion of direct financing level and financial efficiency to the economic growth is increasing.At the end of this paper,in order to make some explanation to the current development bottleneck in Shandong Province and provide some guidance to its economic and financial coordinated growth in the future,we put forward a few policy suggestions based on the empirical results and current situation analysis.Including:Actively adjust the credit structure and enliven the credit stock,vigorously develop the stock market and perfect market mechanism,promote the construction of insurance market and optimize product service,promote the development of direct financing and improve financing structure,break the market monopoly situation and improve financial efficiency.