Regional Financial Structure And Regional Economic Growth

The reasonableness of the financial structure plays a significant role in economic growth. Especially in regions where the financial volume reaches a certain level, a coordinating and optimizing financial structure can promote economic growth, on the contrary, an imbalanced financial structure will restrict the further development of the local economy. This paper selects the most economically developed region with the hugest financial wealth--Yangtze River Delta as the object, by the combination of qualitative and quantitative research methods, to explore relationship between the regional financial structure and economic growth.On the basis of the operation mechanism of financial structure and economic growth, this paper builds up a comprehensive multi-level index system to measure the regional financial structure first; then in the framework of the index system, the paper compares the financial structure of Shanghai, Jiangsu, and Zhejiang; thirdly, the paper makes empirical analysis to the financial assets and economic growth, in the ways of unit root test, cointegration analysis, a double logarithmic regression models, Granger causality test and so on. Finally, this paper gives relative recommendations about optimal financial structure. It is worth mentioning that the regional meso-level perspective and the regional financial structure index system are two important innovations of this paper.This study shows that:(1) the economically developed Yangtze River Delta region still has a bank-based financial structure, the stock assets and insurance assets play relatively weak role to the economic growth of Zhejiang and Jiangsu; (2) direct financing works more effectively in Shanghai, and it needs to be improves in other two provinces;(3) industrial structure always interacts with local economic structure, the role of small and medium private finance in Zhejiang province proves to be significant; (4) in the process of construction of Shanghai international financial center, financial agglomeration effects and diffusion effects will help to optimize the financial structure of the Yangtze River Delta, and improve the regional financial level.