Differential Research On The Impact Of County Financial Development On Economic Growth In Shandong Province

“The Rural Revitalization Strategy”and “the Regional Coordinated Development Strategy” were put forward on the 19 th Report.As the junction of urban and rural administrative regionalization,county is the key to realize the above two strategies,and it needs financial support urgently.To analyze the impact of finance to economic in the county of Shandong province,it can help to develop reasonable financial policies to counties in different development levels,and achieve economic growth in the county of Shandong province.This paper selects 89 counties in Shandong Province as samples,and divides them into developed,medium and underdeveloped counties according to their economic development level.To the economic and financial data of three county samples from 2004 to 2017,the panel VAR model is used to analyze the relationship between financial development and economic aggregate and quality growth.On this basis,we compare the differences of the influencing mechanisms of various financial development indicators in different economic development levels to promote economic growth and quality improvement.Finally,the conclusion is drawn based on the results of empirical analysis and relevant Suggestions are proposed.The study found that:(1)In economically strong counties,financial scale,financial efficiency and credit support all promoted economic aggregate and quality growth,among which,the improvement of economic growth quality was more significant.(2)In the medium economic counties,financial efficiency and credit support also have a small driving effect on the economic growth,but the increase of financial scale will hinder the improvement of economic growth quality.(3)In the less developed counties,the increase of financial scale would block the improvement of economic aggregate,while the improvement of financial efficiency and credit supply support played a role.It is suggested that on the one hand,relevant departments should formulate differentiated economic and financial policies according to the economic development level of the county,strengthen the ability of financial institutions to transform savings into investment,and avoid blindly pursuing the expansion of financial scale,and on the other hand,government departments at higher levels should issue relevant policies to increase credit to economically strong counties and encourage financial institutions to provide more credit support to underdeveloped counties actively.