| Capital, labor, technology is the three elements of economic growth, economic growth and the relationship between financial development on the main conclusion is that financial development improves capital allocation efficiency, and promote the long-term economic growth, financial repression in developing countries is an important cause of economic development obstacles, in this based on the proposed deregulation, financial deepening is to improve the long-term economic growth an important measure. Course of financial development in developing countries is also a history of financial deregulation. Within the regional economy in Jiangsu Province, select Yixing, Gaochun, Jianhu as a case study finds that the regional financial deepening and economic growth, economic growth between the different relationship. Yixing financial deepening and economic growth rate showed a positive correlation between, and in Gaochun and Kin Lake, a negative correlation between the two.What has caused the county economy in the three samples of Jiangsu and regional economic growth rate of financial deepening of the differences between the relationship? Further research found that the conversion of regional savings to the scale and efficiency of credit, savings inflows and outflows of funds is to generate the different relationship between the two main reasons. Yixing local savings through financial institutions, the basic flow of the local financial market, savings through financial institutions, credit effective conversion of capital for local investment. The Gaochun, Jianhu two cases arising from economic development savings into the economy through financial institutions in other more developed regions, local savings into the field of credit funds, affecting the local economic growth.For the more developed regions, the regional financial market opening to the introduction of external financial resources to promote local economic development, but for the economy is relatively less developed regions, the regional financial market liberalization led to the outflow of local savings and affect the region economic growth. Funds flow to the economically developed areas is the development of market economy, associated with the phenomenon of financial market opening, capital can flow as a factor of production, under open conditions in the financial markets is bound to less risk, higher yielding areas of flow the formation of similar industries together for economic development and regional effects of the dual structure of financial development. Accumulation of funds for the economy is relatively developed regions, the resulting scarcity of credit funds, private loans high interest rates, the financial costs, to a certain extent, affected the regional economic growth.What causes the flow of financial resources and the dual structure of the regional financial development, through three case area farmers, SMEs, research found that differences in initial conditions is caused by capital flows and the resulting financial structure of the main reasons for the regional binary. Yixing economic development, farmers, small and medium enterprises can be secured assets, relationships can be secured more easily obtain credit from financial institutions, are less subject to financing constraints. The Gaochun, Jianhu relatively less developed economy, farmers and SMEs to mortgage assets, could be the lack of security relations, access to credit from financial institutions more difficult by the high degree of financing constraints, affecting regional economic development.Capital supply from the perspective of the main financial institutions, risk and return balance to the credit of financial institutions must be considered. Balance risk and return in condition, financial institutions in the context of a larger allocation of financial resources, economic developed areas, enterprises have advantages of scale, operational advantages, financial institutions can invest the funds of credit risk in certain circumstances, receive more the stability of the income. The economy is relatively less developed areas due to economic efficiency of enterprises, there is no advantage of asset size, financial institutions and credit in the income on the basis of some facing more risks, so absorbed by financial institutions will invest the savings of more economically developed area.Market structure, impact of government financial policy is also an important cause of regional financial development, through practical research found that the economically developed regions, due to the total economy of scale advantages, to attract external financial institutions to enter, due to the credit of financial institutions to compete credit funds generated spillover effects, spillover effects not only makes the financing needs of large enterprises are met, the financing of SMEs have access to a certain degree of satisfaction. Economy is relatively less developed regions, the total economic scale can not attract external credit inflows, however, by opening up regional financial markets, the Government encourages private capital to enter, and promote private development of formal financial institutions can increase the conversion of regional savings to the size and credit efficiency, ease the financial needs of the main regional financing constraints, and promote regional economic growth. Zhejiang Taizhou Government to encourage the development of private formal finance, increase regional capital supply, and promote regional economic growth is a good case.Opening of financial markets, private capital can improve the efficiency of domestic financial deepening and increasing regional economic development in the credit, but the development of private financial institutions need a long period of time. During this period to promote private sector financial institutions linked with the formal financial institutions are able to ease the regional economic development is largely in the credit constraint. Private Finance and join the one hand, formal financial institutions can make use of formal financial institutions, credit scale, management strengths, but also to take advantage of private financial information superiority, the two aspects combine to form a credit business in the wholesale-retail model, the risk can conditions to avoid increasing the profits of financial institutions, and promote regional market credit funds. In the actual study found that the interest rate control, the official control of interest rates and a wide gap between the private interest, the existence of a wide gap between the two interest rates for private financial institutions and the formal link among financial institutions may provide a profit-drivenMarket economy and the financial market opening, leading to the dual structure of the regional financial development and capital accumulation to the economically developed regions, the relative impact of regional economic development in underdeveloped areas. However, because the outflow of funds, regulation of financial markets is clearly undermined the long-term efficiency of regional economic growth, therefore, relatively less developed areas of the economy, the policy should be more financial resources to increase supply to alleviate the financial the financing needs of the main constraints on the basis of the scientific supervision of private capital to open financial markets, to increase the regional capital supply, the formation of regional economic development, capital support necessary to promote the long-term regional economic development. |
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