Research On Finance Development And Economy Growth Of Jiangsu Province

Since the middle of last century, with the further deepening of economy monetization and assets finance-rization, finance has already become the core of the market economy. Finance development theory studying the relationship between finance development and economic growth came into being and gradually became an important content of finance theory.On the regional perspective, the paper defines the meaning of regional financial development by synthesizing the former research results, holding the view that the regional financial development is the short-term or long-term evolution of a country's financial structure and financial variables in space. And then the paper analyses the relationship between regional finance development and regional economic growth,considering that, on one hand, by playing five functions of mobilizing the savings, producing information, risk management, corporation governance and convenient business as well as improving private savings ratio, production ratio of capital marginal and promoting the rate of conversion from savings to investment, regional financial system consequently affects regional capital accumulation and technological innovation so as to accelerate the regional economic growth; on the other hand, transformation from regional tradition financial branches to regional modern financial branches in return promotes the upgrading of the regional industrial structure. Based on this basis, this paper studies the relationship between financial development and economic growth in Jiangsu, considering that financial development accumulates a great deal of capital for economic growth, promotes the upgrading of the industrial structure and improves the efficiency of economic growth. Regression analysis method is further applied to analyze empirically the relationship between financial development, economic growth and the upgrading of industrial structure in Jiangsu, drawing the conclusion that financial development advances economic growth and the upgrading of industrial structure in some degree. But some problems, such as comparatively low quality of financial development, serious urban-rural binary financial structure and unbalanced regional financial development in Jiangsu, are still existing, which prevents financial system from sufficiently playing the role in economic growth. Finally, suggestions are put forward to further deepen the financial reform,energetically develop capital market, improve the proportion of direct financing, set up a diversified system of financial organization, strengthen the role of government in the financial development.