Research On The Relationship Between Financial Development And Economic Growth In The Liaoning Coastal Economic Belt

Financial and economic development are vitally interrelated.Financial development is an important force to drive economic growth.Correct understanding of the relationship between finance and economic development plays a key role in finance and economic development.The Liaoning Coastal Economic Belt is a coastal region with a solid foundation for development in Northeastern China.The region has rich material resource and industrial heritage.In 2009,the Liaoning Coastal Economic Belt development plan was formally established and implemented,which vested strategic significance in the new economic growth poles in the northeastern coastal region.Based on these facts,this article aims to conduct related research that analyzes the relationship between financial development and economic growth in the Liaoning Coastal Economic Belt,explores more effective approaches for financial development to stimulate economic growth,and further enriches the research on related issues.Based on the relevant literature and theories,this paper integrates existing data and information,introduces and analyzes the economic growth and finance development in the Liaoning Coastal Economic Belt.Through Granger causality analysis,pulse empirical methods such as response function and variance decomposition,the paper studies the relationship between economic growth and financial development.The results show that they have not yet established the expected interaction for coordinated development: With a prominent latency,the economic growth of the Liaoning Coastal Economic Belt has no significant impact on the regional financial development;the financial development in Liaoning is inadequate and is still in the primary stage,which leads to the phenomena of financial restraint-financial development cannot effectively and significantly stimulate economic growth.Finally,the paper points out the deficiencies in financial resources allocation,financial innovation,financial ecosystem and other aspects of financial support for economic growth in the belt,and draws the following countermeasures and suggestions for the financial development of the belt to drive economic growth: Improve the financial institution system to facilitate the development of the regional financial market;Widen financing channels to promote coordinated development through reforms;Strengthen social credit system to create an ecosystem for financial development;Enhance financial innovation capabilities by cultivating high-level talents.