An Empirical Study Of The Impact Of Financial Development On Economic Growth In Shanxi Province

In the modern economic development,the role of financial development in promoting economic growth has become more and more prominent.Especially in the early stage of economic development,finance is even the first driving force.Finance can not only use its special joint function to play a driving role.It is also possible to adjust the economic structure.It can be said that the level of financial development largely determines the level of economic development.In recent years,the economy of Shanxi Province has developed rapidly,but compared with other developed provinces and cities,there is still a big gap.Therefore,research on how the financial development of Shanxi Province affects economic growth is very meaningful.Based on the actual situation of Shanxi Province,this paper analyzes the status quo of economic growth and financial development,constructs a VAR model,discusses the impact of financial development on economic growth,and proposes relevant countermeasures based on the previous research results.Using literature research,comparative analysis and quantitative analysis,this paper studies the impact of financial development on economic growth in Shanxi Province.First of all,it sorts out the literatures at home and abroad,and rationalizes the research ideas.Secondly,it expounds the meaning of financial development,introduces relevant theories,and analyzes the mechanism of financial development on economic growth;Thirdly,it analyzes the current situation of economic growth and financial development in Shanxi Province,and finds that the economic scale of Shanxi Province is expanding continuously,the secondary industry is developing rapidly,and the financial market as a whole is running well.Fourth,the selection of Shanxi Province from 1980 to 2017 with 37 years of relevant data,a vector autoregressive model was constructed using GDP growth rate,financial correlation rate,financial efficiency and other control variables.The results show that the scale of financial developmen will promote economic growth,and financial efficiency will have a negative impact on economic growth in the short term,but it will have a positive impact on economic growth in the long run.Finally,the conclusions of thispaper are drawn,and relevant countermeasures are proposed for the conclusion,including optimizing the investment structure and improving credit support policies,accelerate bank deepening reforms,increase the proportion of direct financing and innovation financial organizations.The exploration and research on the impact of financial development on economic growth in Shanxi Province aims to analyze the direction and intensity of the impact of financial development on economic growth,and provide ideas for using financial resources to promote economic growth in Shanxi Province.