An Empirical Study On The Non - Governmental Finance In Yunnan Province And The Economic Development Of Yunnan Province

Informal finance, an important support to the finance of our national medium and small enterprises, has been playing an major role in the part that formal finance has not been involved. With the deepening of financial reform in China, informal finance,as a part of our financial system, is required to be reorganized and reformed for the deepening, which presents the inherent requirement of the market-oriented and diversified financial reform.When informed finance playing its role in promoting the private economy, it also brings some negative problems. With the unsystematic laws for informed finance and too many regulatory authorities to regulate informed finance, some informed financial organizations can not stop themselves to the project with high return,which tends to destroy the financial order and the social stability, because of the nature of their capital. Therefore, informed finance has a negative effect on the economic development. In the longtime, informed finance will accumulate the negative parts and then break out some crisis, which does harm to the economic growth and the development of the whole financial market.In this way, it is supposed to accelerate the pace of informed financial construction. Formulate a mechanism with laws and regulations as the core part to support the standardized regulation to informed finance, and to avoid the harm that informed finance brings to the economy. With these improvements, informed finance can play a better positive role in the economic growth.Taking the informed finance of Yunnan Province as a example, this paper studies the influence between the informed finance of Yunnan Province and the economic development of Yunnan Province. In order to get the data about the informed finance of Yunnan Province, this paper chooses the popular θ method for the purpose. With the data obtained, the VAR model about the influence between the informed finance of Yunnan Province and the economic development of Yunnan Province is required to built. Furthermore, the impulse response function is used to forecast the dynamic changes between the informed finance of Yunnan Province and the economic development of Yunnan Province.The empirical results show that under the current legal and regulatory system, at first,the informed finance of Yunnan Province can help promote the economic development. But when the informed finance developed to a certain step, it will start to come out the negative effect on the economic development, gradually offset thepositive part of the informed finance, and eventually have a negative effect as a whole on the economic development of Yunnan Province.In order to avoid the informed finance of Yunnan Province doing harm to the economic development of Yunnan Province in the future, this paper proposes to speed up the construction of the informed finance of Yunnan Province, developing a new mechanism with laws and regulations as the core, improving the ecological environment of the informed finance, and leading it to create more positive effects on the economic development of Yunnan Province.