Western Financial Contribution And Efficiency On Economic Growth

In recent years economic of western region has shown a rapid developing situation, then how great the contribution to economic growth of the western financial? Furthermore, during the process of rapid expansion of the overall size of the financial, what will be what kind of impact of the western financial efficiency on the financial contribution? How to improve the financial efficiency of the west in order to maintain financial sustained driving force for economic development and increase the growth rate of the economy as a whole? In this paper, these issues are the focus of study.In this paper, the financial contribution to economic growth theory is discussed firstly, and the four areas of the financial elements in western region :the financial intermediaries, the stock market, FDI and the value of financial sector are described next.Secondly, test the relationship between the western economic growth and various financial factors by using of regression models, and the conclusion is in line with the related basic research, including the strong positive correlation between western region output value of the financial industry, financial intermediation and economic growth, the weak positive correlation between FDI and economic growth, while the weak negative correlation between financial markets and economic growth.Thirdly, learning from Solow model measure f economic growth contribution to the economic growth, drawn an enhancing contribution of FDI, financial intermediaries and financial services industry output to economic growth, and through the comparison of financial contribution between eastern and western region to drawn the conclusion that western financial contribution to the economic growth is not high overall.Finally, from a viewpoint of financial efficiency to search for the reasons why western financial has low contribution to economic growth, specifically on the basis of the analysis on the respective financial intermediaries, the stock market and FID development efficiency, do empirical analysis of Western financial development and financial macro-micro efficiency, concluding that the low efficiency of the western financial constraints the financial factors on the contribution of economic growth. If we can actively improve and increase financial efficiency, then the contribution of the western financial factors on economic growth will also be greatly enhanced.