A Comparative Study On The Relationship Between Financial Development And Economy Growth In Guangdong And Zhejiang

The economic development can not separate from the rational allocation of resources, and finance plays an extremely important role in resources allocation. The process of monetization of economy in regional economic development put forward the requirements for financial development, and the differences of financial efficiency plays an important role in economic structure optimization and sustainable development in different areas.Guangdong and Zhejiang is the largest and fastest area on the financial amount and the speed of economic development in China. Through the comparative study on the relationship between financial development and economy growth in Guangdong and Zhejiang, we can summarize the general rule of regional economic and financial development, and promote the financial effect to propel and coordinate regional economic development, and provide enlightenment and idea for the economic structural adjustment and development in China.According the condition of the institution change, economic cycle and financial development, we can divide the economic and financial development for four phases in Guangdong and Zhejiang, and analyses the effect on financial and economic development about the regional development strategy, the economic system reform, and the macroeconomic regulate and control. Further analysis showed that Guangdong excel Zhejiang in the economic and financial total amount, but lost Zhejiang in its structure, average, quality and efficiency.After choose the GDP, the Total deposits and the Total loans to do Augmented Dickey-Fuller test and Granger causality test, the article made Co-integration and Error Eorrection model. The model shows that there is co-integration relationship between GDP, the Total loan, and the Total deposit in Guangdong and Zhejiang.Through the comparative and the empirical research, the article conclude the weakness of economic and financial development in Guangdong and Zhejiang, and put forward four proposals such as promote the economic and financial reform, optimize the economic and financial industrial structure, strengthen regional opening and cooperation, and accelerate the construction of legal system of folk financing.