Empirical Analysis On The Financial Development And Economic Growth Relations

In recent years, the financial crisis in the subprime mortgage crisis has triggered a far-reaching impact on the world economy. The relation between financial development and economic growth has been more and more important. And effective financial system for economic development plays an important supporting role.This paper wants to analyze the financial development and economic growth theory among the five cities of Qingdao(Jiaozhou,Jiaonan, Jimo,Pingdu,Laixi) based on the financial development and economic growth. First of all, we can make the conclusions based on the three aspects of economic growth and financial development status of the five cities.They are structure of economic output and economic growth, level of development and financial development of the financial industry as a whole and financial development and economic growth in the relationship.Second, selecting the representatives of the financial development indicators and indicators on behalf of economic growth to build a panel data model, an empirical analysis of the correlation between financial development and economic growth in five cities. Finally, the empirical tests are summarized, and policy recommendations are put to promote financial sector development and economic growth in Qingdao City.Studies have shown that:In the five cities, there are uneven financial development, and financial system is not perfect. There is the phenomenon of financial repression, county credit the phenomenon of loss of economic growth has not been effective financial support. In response to this phenomenon, we make recommendations:Establishing and perfecting the system of diversified financing structure; Deepening financial institutions and financial market reform; improving the economic growth of the financial services environment; strengthening the coordination of financial policy, fiscal policy and industrial policy and strengthening regional financial cooperation.