Study On The Spatial Dependence Of How Financial System Promotes Economic Growth

Based on the definition of financial institution, this article takes 52 countries (regions) as research objects. Financial institution is made up of financial Organization, financial markets, financial regulation as well as financial culture. Then investigate the theoretical mechanism that how financial institution promotes economic growth. On the basis of theoretical research, indicator systems of financial institution and economic growth are set up. With the use of indicator, the spatial economic model that how financial institution affects economic growth is established. At the end of this paper, some relevant conclusions are deduced from the results of empirical analysis. The main contents are as follows.Firstly, through the summary of theories on financial institution and economic growth at domestic and abroad, existed research achievements are reviewed and further research is directed as well. What’s more, the connotation of financial institution is analyzed and defined in depth. Mechanism that how financial institution promotes economic growth is studied, seeing from financial Organization, financial markets, financial regulation and financial culture.Secondly, on the basis of the study that how financial institution promotes economic growth, the indicator systems of financial institution and economic growth are established, according to the principles of comprehensiveness, complementarity, operability as well as relateness. Then according to the theory of spatial economics, a theoretical model of spatial dependence of how financial system promotes economic growth is set up.Finally, the empirical analysis that spatial dependence of how financial system promotes economic growth is accomplished. Founded on the basic research results of how financial system promotes economic growth and the indicator systems, the indicators are pre-processed by using the cumulative probability and transforming into positive values. Meanwhile, spatial autocorrelation index MorarisI is calculated. Following the foundation of spatial economic model of how financial system promotes economic growth, the empirical results are analyzed. The following conclusions are obtained. (1)There are positive affects on the spatial dependence of how financial system promotes economic growth. (2)There are spatial dependence on economic growth, financial markets, financial culture as well as financial institution. (3) Differences are existed between four aspects of financial institution. Financial culture has the largest one. (4)There is synergistic effect between financial Organization and financial regulation. (5) China’s financial institution is lagging behind economic growth.