Jilin Province, The Financial And Economic Interaction Mechanism

Based on the theory of financial development and economic growth, this thesis, from the normative analysis and empirical research from the perspective of the combination, examines the relationship between financial development and economic growth in Jilin province, using statistics and econometrics methods, applying principles of logical or scientific thinking. The paper also explores to interact with each other to improve the quality of mathematical teaching.The paper consists of six chapters. The outline and main viewpoints are shown below.Chapter 1--introduction. Advance problem, and present methods solving the problem and contents.Chapter 2--This paper specifically introduces rational growth with its definition and principles, drawing lessons from developed country and the province in China experience.Mainly review theory of economy growth, theory of economy growth and financial development, and raise reference for function research of regional financial development versus regional economy growth.Chapter 3--theoretical analysis. Generally summarize and analyze function research of financial development versus economy growth from point of view of financial function. In view of this, it studies the relationship between financial development and economic growth theoretically and empirically in this paper. In the first part, it makes an analysis and summary of the theories of the relationship between financial development and economic growth and the findings of scholars in country and abroad. Then the paper analyzes the function mechanism between financial development and economic growth theoretically, revealing the transmission channel between them, aimed at establishing the basis of stimulating the mutual sound relationship between them by the suitable microeconomic policies are carried out. Finally, it looks back to the process of unbalanced financial development of regions and unbalanced economic growth of regions, revealing the trend of the development of the region difference.Chapter 4--regression analysis:function research of Chinese regional financial development versus regional economy growth Demonstrating test the function of financial development versus economy growth of Chinese three economy regions (east, middle and west parts of china) by using regression analysis method and the data.Chapter 5--analysis of status quo:Chinese regional economy growth and regional financial development mainly analyze the economy data from 1991 to 2003 of Chinese three economies regions (east, middle and west parts of china), and find out the relationship of economy growth and financial development. In the part, using economic growth as explained variable, finance as dependent variable and investment and price index as control variables, fixed effect panel data models firstly are established. Using Feasible Generalized Least Squares, it explores how different finance development affects economic growth in the three regions. Next by Granger test it analyses relationship between finance development and economic growth in various regions. The empirical conclusion supports its theory intensively.Chapter 6--policy discussion of Chinese regional economy growth versus regional financial development mainly discuss from two aspects. One emphasizes particularly on economy and finance policy analysis, which includes five points:strengthen the control of income distribution to reduce the. gap of regional finance, establish regional city circle to optimize configure of resource, actively cultivate regional financial center, carry out regional currency and finance policy, evenly develop capital market and currency market. Another emphasizes particularly on discussion of establish regional financial zoology.At last, conclusion and problem needed to research more.