The Empirical Analysis On The Functions Of Financial Development To Shaanxi's Economic Growth

The economic growth is the most important precondition of the improving of people's life, social progresses and the political stability. Unceasing to explore and find the new elements which can cause economic growth and to display their positive role to economic development is the eternal pursuit of the economists. The promotion on the financial development to economic growth has been confirmed positive in most countries. Finance has a reputation of the modem economy core. However, the present results of research in the domestic and foreign focus on the field of the nation, and rarely penetrate into various regions. Due to the unique of the regional economic and financial development, the relation between the two is different in various regions. As a undeveloped province of shaanxi, the research on the relationship between financial development and economic growth has extremely important practical and theoretical significance for richening the regional theoretical researches in this aspect, promoting coordinated development of finance and the economy in Shaanxi province, and enhancing the overall strength of Shaanxi's economy.The paper can be divided into six parts:The first: it briefly introduces the proposed, the purpose, and the ways of research. The second: it mainly introduces the related concepts of financial and economic growth, a comprehensive summary on the theories of financial development and economic growth, and also the analysis on the interaction mechanism between the financial development and economic growth.The third:the author studies the process and current situation that the Shaanxi finance develops with economic growth, analyses Shaanxi economy and finance over years by the data,artwork, and discusses the essential features of Shaanxi financial development and economic growth, as well as the obvious statistical consistency of the data of Shaanxi economy and the finance to find the external relationship between the economic growth and the financial development.The forth: Through the analytical measuring methods such as Unit Root Test,Cointegration Test, and Granger Causality Test, the author analyzes the real relationship between financial development and economic growth in shaanxi province, and then gives us a detailed introduction on the results of the tests.The fifth: on the base of the fourth parts,the author promotes some countermeasures to economic growth and financial development in shaanxi .The sixth: It contains are the conclusion of this paper and the problems existing in the research.This paper promotes the following important conclusions and suggestions:1.Through the analytical measuring methods such as Unit Root Test,Cointegration Test, and Granger Causality Test, the author analyzes the real relationship between financial development and economic growth in shaanxi province. we found that financial development played an important role in promoting Shaanxi's economic growth, such as the efficiency of financial intermediation, insurance market, the government financial support ;while, the expansion of the total and the stock market did not play due role to economic growth of Shaanxi.2. Based on the empirical analysis, we found the status quo of relationship between financial development and economic growth in shaanxi : Fisrt, the role of the financial scale to support economic growth was not obvious. Second, the efficiency of financial intermediation promoted economic growth significantly. Third, financial investment and economic development of Shaanxi has a strong positive relationship, and it is an important factor to promote economic growth. Forth, the last 15 years, the development of the insurance market is also an important reason in promoting the economic growth of Shaanxi. Fifth, the development of the securities market was instability, and the capital market has little effect in promoting economic growth.3. According to the conclusions of empirical analysis, the paper promotes countermeasures to coordinated financial development and economic growth: First, pay attention to the financial structure and efficiency, and play the corresponding role of the expansion of the finance. Second, accelerate the further development of the insurance market. Third, promote the development of Shaanxi's stock market, and Perfect the capital market. Forth, policy support of the government. Fifth, develop the economy of Shaanxi to drive the financial progress, and realize the benign interaction of economy and finance.