The Impact Of Financial Resource Allocation On Economic Growth

Since 1978, China’s reform and opening up, the economy has been sustained and rapid development, the total size of the economy has increased substantially, people’s quality of life improved significantly. In the context of rapid economic development, China’s economic development is also showing a lot of problems, especially the problem of regional economic development difference, the difference of regional economic development, also the further expansion, seriously hinder our country economy healthy, sustainable development. Finance is the basis and prerequisite of economic development, to promote the development of the national economy plays a central role, how financial development depends on the allocation of financial resources. Therefore, the relationship between the allocation of financial resources and economic growth, we should pay great attention to.In this paper, through the 14 prefecture level cities in Hunan province for the delineation of five economic region as the research object, using Theil 14 prefecture level cities in Hunan Province, the 2003-2013 data of Hunan Province financial ratios and the banking industry measure, and based on the measurement results are analyzed and the corresponding graphical analysis of existing research and data; based on the availability of loan balance of financial institutions, from MR, the securities market financing amount and the actual utilization of foreign investment in the CR FR as the independent variables, the GDP as the dependent variable, to measure the relationship of Hunan Province, the allocation of financial resources and economic growth, the allocation of financial resources and economic growth shows that there is a long-term equilibrium relationship between the use of Johansen test based on VAR; the model vector error correction model(VEC), to estimate the model by the autocorrelation test and LM test of normality(J-B), namely, the allocation of financial resources and the economic growth have short-term equilibrium relationship and effective to use the impulse response, the allocation of financial resources to the economic growth of the impact and contribution analysis function vector error the modified model.Research shows that, there is a big difference between the allocation of financial resources in various regions of Hunan Province, the intra-regional and inter regional differences, which also led to the differences in the level of regional financial development, affecting the balanced development of regional economy. Deposit and loan balance of financial institutions on economic growth is negative impact, while the securities market financing amount and the actual use of foreign investment and the positive impact of the actual utilization of foreign investment in the biggest impact on economic growth.