An Empirical Study Of Financial Development And Economic Growth In Qingdao City

Although recent financial crises such as global financial crisis in 2008 are revealing us the unfortunate tragedy that a fragile and unstable financial system may bring to the whole economy,it has also be generally acknowledged that a well-developed and functional financial system,which can effectively provides financial services to firms,plays a key role in economic development.The study about the relationship between financial development and economic growth was begun from 1950s,when many economics did much theoretical and practical study. Recently,much paper focused on the topics of "finance and growth'again.They emphasized on the topic about how to further the economic growth by the financial development.Many economics study the causality of financial development and economic growth by using the country and provinces' data,while they don't concern the difference between different areas.Because Qingdao is an important regional financial center of China,it has its own characters.This paper studies the causality of financial development and economic growth by using Qingdao's local data.By Summing up and analyzing a great deal of papers and documents,this paper has systematized the main sequence of the finaneial development and economic growth and established a rational theory frame.With analyzing the latest research achievements of this theory,the paper integrates the theory with the Qingdao's realities,establishes a reasonable indexes system,uses econometric methods such as cointegration and Granger causality test,and obtains a great deal of empirical evidences and theoretical reasoning. Finally the paper presents some policy suggestions about how to strengthen Qingdao's financial development and economic growth.