Research The Relation Between Financial Income And Economic Growth

Financial income and economic growth are inseparable. On the one hand, the scale, speed, quality and structure of economic growth decide the total value, speed and structure of financial income. On the other hand, financial income can affect the economic operation by government participating social reproduction and resource allocation. To keep the coordinated development between financial income and economic growth is a hot issue of research in the theory and practice circle. But in the past few decades, the government has paid more attention to the economic volume growth, and overlooked the guiding role of financial income as an "economic barometer". It made many detours in economics growth. Affected by the traditional planned economic system, the financial policies and tax policies have fragmented the relation between financial income and economic growth artificially. Therefore, the conflict between financial income and economic growth has stood out increasingly.According to this situation, this paper takes Hangzhou City as an example, by combination of qualitative and quantitative analyses, comprehensive discusses the relations and contradictions between financial income and economic growth. The paper first introduces the study background, aim, significance and frame, and systematically sorts out and reviews the relevant literatures home and abroad. Then the paper establishes financial revenue regression model and error correction model in Hangzhou by utilizing modern econometric methods, and finds the, affecting factors by analyzing the reasons of financial income growth deviated from the economic growth. The affecting factors are described respectively, and the important ones are further studied. Finally based on above researches, the correlative policy suggestions are provided.The main conclusions of this paper: (1) GDP is a decisive factor in financial income amount; the tow variables are linearity relation and have long-term cointegration relationship. However, under the comprehensive actions of economic structure improvement, economic growth transformation, the finance and tax system reform, tax collection management strength, there has no closely relationship between the GDP growth and financial income growth. (2) In recent years, industrial structure of Hangzhou city obviously improved. Industry tax and per-mu yield tax greatly raised. But there are still some problems, such as industrial advantages are not obviously; regions develop unbalanced; industrial growth slows down; risk of tertiary industry increases; the amount , scale and land area of new businesses do not match the per-mu yield tax; land resource uses low-efficiency; false investment, capital flight and regional vicious competition are serious; and so on. (3) In order to ease conflicts in the process of financial income and economic growth in Hangzhou City, promote the harmonious development of financial income and economic growth, we should set up economic concept of finance and tax, perfect related systems of tax. We should promote industrial upgrading and optimize economic structure by making greater efforts in technology innovation, speeding urbanization-steps, giving priority to the third industry, playing financial role in macro-contro and policy guidance. We should change current model of capital introduction, optimize the use of resources, and accelerate transformation of the mode of economic development.