The Analysis Of The Impact Of Individual Consumer Credit Devalopment On Ecnomic Growth In Jiangsu Province

The economy of Jiangsu Province is in the leading place of China, and the consumption of the local resident is in the key phase of upgrading.However, due to the restriction of revenue and traditional consuming conception, the ratio of resident consumption in Jiangsu Province is relatively lower. Especially after the breaking out of international finance crisis, how to bring up the consuming of Jiangsu while keeping the investment and export mounting up and form the consumer leading type of economic growing mode has became the keystone in ensuring the smoothly and speedy development of Jiangsu. During the last ten years, individual consumer credit has made rapid progress in helping resident borrow and lend money, arrange consuming relating time, and upgrade consumption structural.In the background of government stimulating consumption and expanding domestic demand, all kinds of policies of boosting individual consumer credit has been proposed, and Jiangsu, is expected to usher in the development of personal consumer loans another spring. Consumer credit is not only beneficial to individuals, for enterprises, availability of consumer credit businesses can make a timely return on investment, speed up the Corporate Finance Working Capital. The same time, consumer credit can optimize financial institutions, commercial banks and other credit asset structure, broaden the channels of commercial banks, earning profits, diversification of credit risk, to promote the development of market economy. Therefore, it has important practical significance to promote the development of individual consumer credit in Jiangsu Province.This paper is based on related theories of individual consumer credit and economic growth, and then combines empirical analyzes with qualitative analysis about the advantages and disadvantages of boosting individual consumer credit in Jiangsu and uses the relevant data of to establish regression equation and integration theory and vector error correction model to analyze the long-term balanced relation together with short-term dynamic relationship between consumer credit and economic growth in Jiangsu Province. The result of the recession indicates that, In the long run, in Jiangsu Province, the development of consumer credit can boost consumption, while consumption increased to stimulate economic growth, but now consumer credit has a limited role in boosting the immediate consumption and the national economy.In the short term, the role of consumer credit in boosting consumption and economic growth may deviate from the long-run equilibrium level.The current level of development of consumer credit in Jiangsu Province constraints its stimulating effect on the economy.All the analysis comes to the conclusion that individual consumer credit can promote the local economic growth through promoting consumption in Jiangsu, and economic growth and individual consumer credit is the consequence for each other. Based on the analysis and the current economic situation, this paper put forward the roles of government, bank and individual in developing individual consumer credit, then from long-term point of view proposing some relevant steps such as expediting the construction of town, exploiting the country consumption credit market and so on.