Research On The Relationship Between Disparities Of Regional Financial Developments And Disparities Of Economic Growth

The study on relationship between financial development and economic growth is just suspended on relationship between one or several financial development variables and the economic growth but leaves the disparity analysis out. This paper discusses the relationship between financial development disparity and economic growth disparity of three provinces in northeast from 1952 to 2004 by cointegration analysis based on VAR. Find out the financial variables which influence the economic growth remarkably in different periods through the cointegration test of different periods and categories. And further study the influences degree of every variable by variance decomposition. Finally it comes to the conclusion that there is a remarkable relationship between financial development disparity and economic growth disparity,financial variables which effect economic growth disparity remarkably have turned to structural and efficient variables and economic growth disparity becomes to make an more important effect on financial development disparity.The thesis consists of four parts:Part One Foreword. Elaborate the necessity of the study on relationship between financial development and economic growth.Part Two Review the documents. Firstly review the theories of economic growth and financial development, and then discuss the documents about the relationship between financial development and economic growth, at last, comment on the theories and documents objectively.Part Three Statistical and quantitative analysis. It is the most important part of the thesis. At the very beginning, the methods of quantitative analysis,resources of the data and statistical variables are put forward, followed by general trend analysis of financial development disparity and economic growth disparity, which forms the basis of cointegration test of different periods and categories between the financial development disparity and economic growth disparity. Finally, the relationship between the financial development disparity and economic growth disparity are established by cointegration analysis based on VAR in different periods.Part Four Conclusions and suggestions. We can reach the conclusions by the studies of Part Three, and based on which, some suggestions will be advocated.