A Study On The Impact Of Financial Development On Economic Growth

Finance is an important factor in modern economic development and plays an important role in regional economic growth.In recent years,the "talent war" in various regions of our country for talents has intensified.This is because a region has more talent reserves,and this region will have a higher level of human capital,as well as a higher quality of labor supply and innovation.capacity,which in turn strongly promotes the growth of the region.That is to say,a more abundant labor supply and a stronger ability to innovate will ultimately drive economic growth in the region.Based on the above situation,this paper will start from the ultimate goal of economic growth,and try to study the impact of the amount of human capital stock in a region or country and the level of financial development on economic growth.This paper has five parts: The main content of the first part is the introduction of the research background of this paper and the theoretical and practical problems that this paper tries to solve.The main content of the second part is to describe the concepts and theories involved in the research process of this paper,and to determine how to select variables in this paper.The main content of the third part is to introduce the development of human capital and finance in our country.The main content of the fourth part is to use the method of establishing a mathematical model to verify the theoretical mechanism obtained in this paper.The empirical model utilized in this paper is the threshold regression model,first used by Hansen in 1999.Based on Hansen’s model,this paper takes the regional nominal economic growth rate as the explanatory variable and the regional financial development level as the explanatory variable,and designs the stock level of regional human capital as the threshold variable in the empirical test process of this paper.From a quantitative point of view address the issues raised in this article.The fifth part is the summary of this paper and relevant policy recommendations.The research of this paper has the following conclusions: The first conclusion is that there are two human capital thresholds in the country.Among them,there is a threshold in the western region and a threshold in the central region.When the national level of human capital is lower than the first threshold and higher than the second threshold,it has an inhibitory effect on economic growth;the central region has an inhibitory effect on the economy when it is below and above the threshold,but the inhibitory effect is higher than the threshold Greater;the western region can promote economic development below the threshold,but it is not conducive to economic growth above the threshold.The second conclusion is that the level of human capital in different regions of our country is not balanced,and there is a big gap between the level of human capital and financial development in different regions of our country.Based on the above analysis,this paper puts forward the following policy recommendations:First,continue to vigorously develop education to promote the transition from demographic dividend to quality dividend.The second is to continue to promote industrial upgrading and development of secondary and tertiary industries to absorb human capital.The third is to increase policy support to precisely and flexibly support industries that conform to the new development concept.Fourth,vigorously develop inclusive finance to lower the threshold for financial services.Fifth,continue to implement the regional coordinated development strategy to make regional development more coordinated.