Regional Financial Development And Regional Economic Growth Relationship

In recent years, economists pay more attention to the contributions of financial development to economic growth. According to the theories on finance and economics, as the financial market develops, the capital flow has been promoted, which further reduces the enterprises'fund raising cost. The increasing fund raising proportion can bring about the fulfillment of efficient resource allocation. And it can also optimize resource allocation and boost capital production, thus contributing to the economic development.On the regional economic perspective, the paper defines the meaning of regional financial development and regional economic growth by synthesizing the former research results, holding the view that the regional financial development is the evolution of a country's financial structure and financial variables in space. Based on this basis, this paper studies the differences between regional financial development and regional economic growth in Jiangsu, considering the scale of the financial industry, financial structure and the efficiency of the financial industry.Regression analysis method is further applied to analyze empirically the relationship between financial development and economic growth, drawing the conclusion that financial development advances economic growth.Based on the general analysis and empirical tests, the article went on to analyze that how Jiangsu regional financial impact regional economic growth, revealed that the reasons and specific performance for uneven regional economic growth in Jiangsu province. Finally, the impact of regional economic growth in a variety of financial factors and put forward corresponding countermeasures and suggestions.Finally, the summarized financial factors are the impact of regional economic growth, and suggestions are put forward to further deepen the financial reform.