Jiangsu Financial Development Imbalance Empirical Analysis Of The Impact Of Regional Economic Growth

Since the reform and opening up, China’s economic developed rapidly, finance’s role in promoting economic development has become increasingly evident, the government pay more and more attention to China’s financial industry’s long-term planning and development. In this context, Jiangsu Province has made great achievements in economic construction, the financial sector also has considerable progress, but the Jiangsu province’s economic and financial development is imbalanced, showing large regional differences. This paper argues that imbalanced development of finance is the main reason of regional economic development differences.The article collect southern, central and northern Jiangsu13prefecture-level cities’ data from1990-2009, using the panel data model, from the new perspective of differences of financing capacity, and empirical analysis of financial development on the regional imbalance in economic growth mechanism, then fine that the imbalanced financial development cause unbalanced economic development between the three regions of Jiangsu. Studies have shown that savings-investment rate difference, free movement of capital, diversification of financing channels to varying degrees, negative impact of regulatory policies, incomplete laws and regulations, and so forth, led to the development of inter-regional financial imbalances, the direct performance is direct and indirect financing capacity differences, and ultimately affect regional economic development.The imbalanced development of finance and economic in Jiangsu Province is a tip of the iceberg of that in China. Therefore, the study in this article has universal significance, for narrowing the gap between the national inter-regional economic developments in China and maintain harmonious and stable development has practical significance.