Demonstration Of Financial Development And Economic Growth In Northeast District

Finance is considered as the core content in modern economic development. And besides that in most of country, most of scientists do confirm that finance indeed do good to the growth of economics. From the macro level in China, people couldn't deny the positive effect that the finance did to economy. Economy is such an important part to not only people's life, the impress of the society but also the political stable of one country, it is so necessary to develop finance in order to confirm the long and stable development of economy. As China is such a big country with its boundary 9.6 million square meters, and in different areas it would have different natural resource and the quantity of population and the level of economic development. In recent years, with the high speed of development, the market economic structure become more and more perfect than before, so that would cause the big gap between different areas with different economical level, the contradiction of the un-equilibrium level of economy development in different areas become more and more serious. At the same time, the development level of finance also turns out to obviously un-equilibrium than before. In order to solve this problem, our government takes a lot of policy to improve this situation, to reduce the difference between different areas. Like under the base of protect the stable and high speed development of East district, we also take some action to develop the South district, promote the Northeast and spring up the Middle part of China. All of these strategies aimed at to bring huge opportunity to develop the regional economic development.Since the State Department put forward the policy that to promote the development of Northeast district, this part of China's economic level has been enhanced a lot, and the finance industry has also been developed well. Now Northeast government is busy at to develop their own finance center. At the conference of finance development which was hold in Beijing at April,2009, the thesis of let Shenyang to be the finance center of Northeast district and accelerate the development of Northeast finance become a public discussion issue. So we can conclude that how important to think highly of finance development in Northeast region. But nowadays, finance crisis is such a common problem, people either couldn't know the reason of finance crisis nor don't have some completely accept policy to avoid finance crisis. So it is very important to do some research between the finance development and the growth of the economy. Not only we can provide something to consult before we make finance decision and also we can make relevant department to pay more attention to finance development.There are four chapters in this thesis, and the main train of thought is:under the successful experiences of others to go by the regional finance development theory and the growth of economy theory, base on the nowadays research result of regional finance, conclude the core concept, research object and the main research part in the future of regional finance. Use the specific analysis tool of regional financial develop, consider their own peculiarity finance level of Northeast district, in order to find out a specific way to make their finance and economy to developed more and more better than before.Chapter one is introduction. This chapter including the background and significance of the research, research theories, research methods and research ideas. It summarized the relevant literature at domestic and abroad, mainly focusing on the classical theory of financial structure and development, besides that analysis the latest results of financial structure theory research. It also commented on the research which has been done by scholars in China.Chapter two is about the modern status of finance and economic development of Northeast region. Consider the actual status of Northeast region, introduce the whole current situation of finance industry concretely and introduce the representative indexes of measure the financial development level. For example, here the writer use the FIR to imply the scale of Northeast financial development, and use the index DEPTH to imply the deep level of Northeast financial development, here we conclude that compare to the whole country that the financial development in Northeast region is little lower than average, and the speed of finance development couldn't catch up the speed of economical development.Chapter three is the core part of this thesis, it is about the empirical analysis on the relationship between the financial development and the growth of the economy in Northeast district. Here the writer choose the RGDP to imply the growth of economy, and FIR,DEPTH,LNV to imply the financial development, using econometrics method such as ADF Test, Granger Test and Co integration Test to analysis the inside relationship between the financial development and the growth of economy in Northeast area. Concluding that the finance do have some positive impact on economical growth and they do have cause and effect relationship base on Granger meaning.The last Chapter is about the conclusion and recommendations. Base on the result of this thesis to provide some useful advice on finance and economical development in Northeast district in the future, and put forward some issue that this thesis couldn't solved.