Guangdong Financial Development On Economic Growth Conduction Channel Research

In recent years, it is a research hot issue on the relationship between financial development and economic growth. Guangdong province has a leading position on both financial development and economic growth in China. By researching the transmission channels between financial development and economic growth in Guangdong, it is with a certain reference value for how to develop finance in Guangdong to promote economic growth.Based on the research of theory, first, this paper analyzes the internal mechanism on how financial development to promote the physical capital accumulation, human capital accumulation, technological progress, thus promoting economic growth from macroeconomic perspective and the perspective of financial system functions; Second, by integrating the realities of growth for financial and economic development in Guangdong, the paper analyzes the channels on how financial development to promote economic growth in Guangdong. In the empirical study, by changing the past practice of the international generic indicators used in the study and choosing indicators with the reality of Guangdong on the characteristics of real economic growth and bank-led financial system in Guangdong, the paper uses ADF test and Cointegration test methods to determine the channels of financial development to economic growth transmission. The results show that physical capital accumulation is the most important channel of financial development to promote economic growth in Guangdong, followed by human capital accumulation, technological progress plays the weakest role. Specific mechanisms are: financial development promote to the material capital accumulation in scale and financial efficiency is low; Guangdong's financial system promote the accumulation of human capital of Guangdong through education funding, the provision of education credit, etc; Through R&D credit, the financial system promotes high-tech industries, however, the impact of financial system to technical progress is limited.Finally, considered the theoretical analysis and empirical test results and combined with financial and economic reality of Guangdong, some countermeasures are given to coordinate financial development and economic growth in Guangdong Province.