Research On Financial Support To The Vigorous Development In Northeast Region

The vigorous development of Northeast China which is discussed currently is carried outunder the condition of the preliminary establishment and further perfection of marketeconomical framework and relatively high open degree. Finance is the core of moderneconomy in market economy. Only with the solid scheme and framework supported byfinance does vigorous development of Northeast Region have solid prerequisite andfoundation. Only with efficient financial support does the internal and external resources ofNortheast Region be well aroused, conformed and utilized, making them become motivepower of the vigorous development of Northeast Region.First, the relationship between finance and economy should be defined in order to givefull play to the support and acceleration of finance to economical growth. This dissertationbegan from the economical growth, the financial development, and the regional financialdevelopment theories, analyzed the relationship between economical growth and financialdevelopment, evaluated the various theories and drew the conclusion that there was somerelationship between economical growth and financial development and financialdevelopment accelerated the economical growth strikingly.Second, the current situation and problems existing in the financial development inNortheast Region were analyzed on the base of various theories. Through lots of data, thedissertation illustrated the current situation of financial development in Northeast Region,such as CDP and GDP per person, the relevant ration of total finance and state-owned finance,the deposits and loans of all the financial organizations, the balance of savings by residents incities and countryside, stock market situation, the actual use of foreign capital and the incomeof insurance premium, etc. Then, by analyzing the data, the problems existing in the financialdevelopment in Northeast Region were summed up, that is, slow growth of economy and poorcapability of self-accumulation;small input of funds;low ration of savings and savingsinvestment transition;small proportion of deposits and loans;single financial assetsframework;weak financial function and imperfect financial system, etc.Above all, reasons were found in order to put forward proper strategies to the existingproblems. The dissertation started from a model which showed a relation between financialdevelopment and economic growth and testified it. It was proved that the relation betweenfinancial development and economic growth in Northeast Region was positive by quotingscholars' models. Financial development advanced economic growth effectively. Then reasonswere analyzed individually according to the existing problems. The main reasons were thefollowing: the low level of financial development;the extreme limited input of funds;the lessdeveloped financial system;the ineffective implementation of financial policies. The maincountermeasures were the following: making financial organization system in NortheastRegion perfect;reforming its financial investment system and implementing effectiveregional financial policy.