Empirical Study On The Country Fiscal And Financial Supporting Of Economic Growth

Currently, the state-owned commercial banks have to adjust business strategy, a large number of financial institutions merge the county, especially in underdeveloped counties. At the same time, underdeveloped county's private small and medium enterprises is in its infancy, producing a smaller scale, the financial system is not perfect, not for external financing. The formal business of the financial sector in order to avoid risks, are generally reluctant to lend in the less developed counties. The result is less developed county investment needs of enterprises are often in short supply due to formal financial and non-formal financial costs are too high and difficult to meet. In the absence of government intervention in the market conditions, will inevitably lead to the county economic and county financial mutual inhibition between the vicious cycle mechanism. So, in less developed counties, the Government is often given as the county economic development and financial support to provide important financial responsibility.Development of county economy is not only about our goals of a comprehensive well-off society, and has long been the top priority of government and academia. So far, many scholars on how to support economic growth in the county, respectively, from different angles, using different research methods of banking, finance and promote economic growth on the economic efficiency of the analysis and study, but these documents are mostly based on the overall situation of the country, Although the overall conclusions of the guide, but in economic development between different regions, different resource endowments, industry-oriented divergent specific national conditions of China, rather a lack of local applicability. And difficult to improve the efficiency of policy implementation limited the chronic illness, it is little empirical analysis of the county financial, financial support for the relationship between economic growth. However, the combination of increasing income gap between the county's reality, Taihu County and belong to economically backward areas of our country is most in need of policy and funding support of the object. Therefore, how to improve the Taihu County financial and fiscal support for economic growth and optimizing the allocation of resources both in terms of efficiency and global regulation, and thus speed up capital accumulation and technological change, and ultimately improve the economic growth in Taihu County, will be the focus of this study. In view of this, the paper related to 1990-2009 statistical data on Taihu County, sample, GDP growth of Taihu County, and finance, financial support, the correlation between the characteristics embodied in the analysis, combining empirical research findings, the county economy of less developed development of problem solving to provide further empirical evidence.Constituted by the six chapters of this thesis, as follows:The first chapter briefly describes the main contents of the paper background, significance, research methods and data sources. On the basis of research papers presented, and possible innovations and shortcomings;The second chapter is international and domestic financial development, fiscal expenditures were to promote economic growth, a brief literature review and comments, mainly on the domestic use of empirical research methods of these two issues. Taking into account the administrative division in China and abroad, the differences, mainly based on theoretical study of foreign national, the county did not address research in the field.The third chapter of the Taihu County economy, finance, financial development status, the first summarizes the Taihu County area in recent years in economic achievements, followed by Taihu County on the total amount and structure of financial analysis, Furthermore, a brief analysis in Taihu County Since 1990, the county's financial situation.The fourth chapter is part of empirical research, first introduced the indicators used in empirical analysis, while based on existing data, the use of unit root test, cointegration test and Granger causality test on the Taihu County, respectively, financial development, financial expenditure and the relationship between economic growth, an empirical test. In order to determine the causal relationship between them and influence the extent and nature.Chapter V mainly from the theoretical analysis of Taihu County, financial development, fiscal expenditure role in promoting economic growth, and empirical analysis through the last chapter, on the basis of the conclusions, summarizes the financial development in Taihu County, the experience of economic growth in expenditure Taihu County, and some financial constraints, financial support for some of the factors of economic growth, recognizing that Taihu County, financial development, fiscal spending to support economic growth achieved in the longer-term progress, to overcome these factors.Chapter VI is the final chapter of this paper for policy recommendations, mainly restricted to Taihu County in the last chapter of financial development, fiscal spending to support economic growth appears in some of the constraints put forward countermeasures to help achieve economic growth in Taihu County, more good achievement.