The Analysis Of Financial Support In Economic Development In Chongqing

The relationship between financial development and economic growth, especially the rational measurement of the contribution to economic growth of financial development has become an important subject. Theoretical and empirical studies indicate that finance has no longer been considered as a factor that passively complied with the economic growth, it is becoming a motive force of the economic growth. The modern financial industry has functions of effectively mobilizing deposit, optimizing the distribution of resources, reducing transaction cost and agency cost during payments and settlement, disseminating market information, elaborating information advantage of professional associations, reducing information asymmetry and dispersing market risks. The contribution of finance is exactly based on the full play of financial functions. Therefore, it is necessary to conduct the measurement of financial contribution under a financial function visual.The main contents of this article can be introduced briefly as follows:The first section introduces the background of this study. In this chapter, the author reviews the current situation in economic development and raises the question why it's important nowadays for Chongqing to get more financial support.The second section builds up the theoretical framework for finance supporting economic development. Economic growth theory and financial development theory are employed to analyze the relationship between financial development and economic development, to establish a theoretical model for the analysis of finance supporting economic development, and to set up a standard for the assessment of financial development. This framework provides a strong support for analyzing the current status of financial support and its contribution to the economic development in Chongqing.The third section is the introduction of Chongqing basic status. It takes Chongqing as the research object, and chooses Beijing, Shanghai, and Tianjin to be the reference, which are all developed provinces. We compare their differences in the aspects of financial resource, which includes loans and deposits insurance premiums, stocks, and foreign capital, economic level and industrial structure.The fourth section is the empirical analysis of the financial support in economic development in Chongqing. Firstly, a model of economic growth is established. The assessment criteria for the factors affecting economic growth are identified, and a quantitative analysis of financial involvement in economic growth is performed.The fifth section is the conclusion and suggestion. Based on the literal and empirical analysis, the article puts forwards pieces of suggestions in order to optimize and develop the financial resources in Chongqing. The suggestions include regulating and upgrading the industrial structure, perfecting the financial carriers, expanding the financial markets, and so on.