Research On The Impact Of Financial Development Differences On Regional Economic Growth In China

Since China's reform and opening up,rapid economic development,the role of finance is indispensable.Financial development determines the direction of capital allocation.As the link between savings and investment,finance promotes industrial restructuring and technical progress to improve efficiency,which has a positive role in promoting economic growth.With the rapid growth of China's economy,the risk o f capital collection is also expanding,and financial institutions tighten the loan scale,so as to promote China's economy to maintain a sustainable and stable growth.By analyzing the influence mechanism of financial development on economic growth,this paper can promote economic growth by improving savings rate,capital use efficiency and savings-investment conversion rate.The financ ial factors that influence regional economic growth include financial structure and scale,financial efficiency and financial policy.Mechanism in order to validate the proposed theory,the article selected all over the country provinces and cities in 2003-2017 economic and financial related panel data as the research sample,to economic growth is as explained variable,from financial institutions and the scale,financial efficiency and financial policy three aspects: the selection index as explained variab le,with human capital as the contro l variables panel regression model is established.The results of empirical analysis show that the savings-investment conversion rate and the circulation of money are the most important factors affecting the economic growth of the eastern and western regions of China,and the savings-investment conversion rate can reflect the financial efficiency of each region and promote the economic growth of the second and third industries in each region.The scale of bond issuance has no promoting effect or even negative effect on the eastern and central regions,while the scale of stock issuance has no significant effect on the eastern and central regions and negative effect on the western regions.The reason is that China's capital market is not perfect,and regional economic growth depends on enterprises.Finally,four Suggestions are put forward to promote regional economic growth under the differentiation of financial development: improving the conversion rate from savings to investment,improving the financing structure of enterprises,optimizing the loan structure,and promoting the marketization of interest rate.