Regional Financial Development And Economic Growth In China: Panel Data Analysis

Economic Growth and Financial Development are two important economic questions for discussion. The meaning of economic growth includes the continual growth of GDP and the optimization of economic structure. The theory of endogenous growth describes the relation between technical progress and economic growth. Financial Development means the development of financial assets, financial system, financial markets and the optimization of financial structure. Great progress in economic growth has been achieved during the past 20 years after economic reforms in China, but the difference of the development of financial and economic growth in different region of China is more and more obvious. To reduce the difference between the regions and to realize the harmony of financial and economic growth is the difficult problem Chinese government should serve.There are six chapters in the dissertation:The first chapter explains why this topic was selected and summarizes the major literatures on this topic both from overseas and domestic academic circles. This chapter also points out the creations and shortcomings of this dissertation from the author's perspective.The second chapter summarizes the literatures of the financial development and economic growth theory, analysis the important affection that financial development work on the economic growth.The third chapter discusses the affection that financial development works on the economic growth in china, and analysis the function mechanism of the development of banks and stock market work on the economic growth.The forth chapter describes the difference between the east , middle and west region with the financial development and the economic growth. Emphasize the importance of advice to the question.The fifth chapter use the panel data demonstrate the relationship between financial development and the economic growth of the east , middle and west region. The result means the disparity of financial development can partly explains the difference of economic growth. To enhance the level of financial development can be benefit to economic growth in long term.The sixth chapter mainly proposes policy advice to the different region. Institute the favorable policy to the Midwest, try hard to serve the problem of the badness loan of Midwest, establish multilayer capital market, pay more attention to the system innovation in Midwest. These proposals are very important to reduce the difference between east and west region, and to accelerate the harmony development in every region of China.