| With a vast territory, the imbalances between regional economic and financial development have existed for a long time. Finance is the core department of today's economic development, the inter-regional imbalances between financial and economic development are uneven and will certainly affect the future development. In this paper, regional panel data in1996-2007 years are used for studying the relationship between the indicators GDP of economic growth and the indicator FIR of financial development, using the division of the eight economic regions. An overview of the regional differences is got. After the unit root tests and cointegration examination of the data, the individual fixed-effects panel data model is established. The Model shows that there is a long-term equilibrium relationship between economic growth and financial development. Then an ECM model is built to consider the short-term relationship between economic growth and financial development. In the end, some policy recommendations are given, for the results of the empirical analysis. |
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