Research On The Dynamic Relationship Between China's Financial Development And Real Economy

In recent years,China's financial industry has developed very rapidly,but the phenomenon of difficult and expensive financing for the real economy is still very serious.Therefore,what kind of relationship between the development of China's financial industry and the growth of the real economy has gradually attracted people's attention,and the relationship between the two is gradually becoming a research hotspot of scholars.This article first makes a comprehensive review of the previous achievements on financial development and the development of the real economy,analyzes the related mechanisms of finance promoting economic development,and believes that the real economy leverage ratio is an important indicator that reflects the relationship between financial development and the real economy.Therefore,this paper measures the real economy leverage ratio of each province in China from 2003 to 2017 through quantitative analysis methods,and uses the dynamic panel smooth transfer regression model to study the financial development of China under the threshold variable of real economy leverage ratio.There is a nonlinear relationship with real economic growth,and at the same time,the regional decomposition of financial development is used to further explain the existence of the nonlinear relationship.The conclusion of the study shows that the difference in the leverage ratio of the real economy in each province is roughly similar to the distribution of the economic development level,showing a situation of high in the east and low in the west.In some regions,the leverage ratio will be higher due to financial agglomeration effects or policy effects;The degree of regional financial development has a nonlinear relationship with the promotion of the real economy: when the threshold variable real economy leverage ratio is lower than a certain threshold,financial development has a restraining effect on the growth of the real economy,only when the real economy leverages When the rate is higher than the threshold,financial development will promote the development of the real economy;at the same time,the populationweighted coefficient of variation method is used to further explore the roots of regional financial development differences,and the main reason for regional financial differences comes from the region Internal financial differences.Finally,according to the conclusions drawn by the article,relevant policy recommendations are put forward.