| Economic growth is the precondition of social development and political stability. Since Schumpeter pointed out that the bank play an importance role of in economic growth, the relationship of financial development and economic growth has become intensive research topics of economists. Is there existing relationship between economic growth and financial development? Does financial repression maintain a steady economic growth or hinder it into faster growth channel? Whether the finance itself could be excessively developed to damage the health increase of economy? These topics have been arguing. Financial activities exist significantly and widely in the world economy, and act more actively. At the same time, there are great differences in different development stages of economic development level and financial structure. With the 2008 global financial crisis, disastrous consequences of the financial innovation and liberalization revealed. Recent studies show that a financial system which provides effective financial services has huge impact on economic development indeed. Cultivating mature and perfect financial system has become an important goals for deepening financial reform and making macro economic development strategy of every country.At present, there are lots of researches based on the developed countries, which lay a solid foundation for the study of financial development and economic growth in China. However, there are few researches on the relation of regional financial development and economic growth within China. There are more attention on the financial development and economic growth of the overall condition. The financial development of Shandong Province has the characteristics of the country. and also has its own particularity. So there is important significance to do research of financial development of Shandong Province as samples, the research can further direct the construction and the development of financial industry of Shandong Province and at the same time it has great realistic significance of developing financial industry and economic growth in other areas. This paper is composed by 4 parts:introduction, theoretical analysis, empirical analysis and policy suggestions. In the part of introduction, the issue to study has been put forward, background of the thesis, concerned innovations and study methods have been interpreted briefly. In the part of theoretical analysis, first the main part of it discussed the financial development and economic growth of related theory. Then the related literatures at home and abroad are reviewed, the transmission mechanism of financial development and economic growth in the interaction was analyzed on the basis of it; In the part of empirical analysis, first it describes the national economic and financial development situation of Shandong province macroscopically, uses rational analysis and conduction mechanism analysis of the second chapter as the theoretical basis and apply the threshold model to observe and study the non-linear relationship of financial development and economic growth of Shandong province; In the last part (Conclusion), the thesis has summarized the main content and results of this research, investigates the target of the financial development of Shandong province and finds the development path of economic gain in the existing financial system. Then it has pointed out the deficiency of the study. |
