The Real Example Analysis Of Relation Between Financial Development And The Economic Growth In XINJIANG

The issue between Financial Development and economic growth has attracted considerable attention and has been the subject of many studies. Relations between financial development and economic growth may be different because the economic development level and financial development state in different areas. When the different areas that economic development level is enormous differences face the same financial system, the function of financial developing to the economic growth must demonstrate different. So the studied the relation between financial development and economic growth of each different area is very essential. This paper empirically investigates the hypothesis of a causal relationship between Financial Development and economic growth in XINJIANG over the period 1978-2006.Special attention is paid to the integration properties of the series and, in addition to analyzing the data using standard "pre-cointegration" Granger causality techniques, this paper employ modern vector autoregression methodology(VAR). The result of cointegration reveal the exist long-run equilibrium between Financial Development and economic growth in XINJIANG over the period 1978-2006, Using the concept of Granger-causality, the finding herein suggest that the economic growth in XINJIANG is the Granger-causality of the Financial Interrelative Ratio of XINJIANG, The Financial Intermediation efficiency and the improvement of the Residence Saving in XINJIANG is the Granger-causality of the economic growth in XINJIANG.