A Research On Coordinating Development Between Chongqing’ Fictitious Economy And Real Economy

Since reform and opening up30years, China’s economic and social developmenthave made great achievements, but at the same time，the real economy also faces thetransformation of the mode of economic development,the industrial structureadjustment, narrowing the gap between urban and rural areas, and a series of otherchallenges. In this situation, how to play the role of finance in promoting economicgrowth, inhibit the growth of real estate bubble, to promote coordinated development ofregional real economy and fictitious economy is of great significance for maintainingsustained economic growth in our country, promoting the transformation of economicdevelopment. As with many areas throughout the country, Chongqing is faced with aseries of problems affecting economic sustainable development. In the transition stageof Chongqing economic development, thinking of how to ensure coordinateddevelopment of the real economy and fictitious economy of Chongqing is of greatsignificance for Chongqing comprehensive construction well-off society and achievingstrategic positioning of the country.Many theoretical researches and some countries’ development history have provedthe fact that financial development can promote economic growth. But, financialsystem’s fictitious characteristic and linkage effect with the real economy produce theseeds for the real economy bubble. Experience has shown that if the fictitious economycan coordinate with real economy, it would be the "booster" of the real economy;otherwise, the fictitious economy will fall into the predicament of the bubble burst, andhuge blow to the development of real economy.First, this paper reviews and evaluatesthe existing related literatures. Second, it analyzes the linkage effect between the realeconomy and fictitious economy, and interprets basic role of the real economy to thedevelopment of fictitious economy, and the adverse effects of fictitious economy on realeconomy through capital accumulation, allocation of resources and wealth equivalent.Second, analyze Chongqing’s economic status from the angles of overall scale,economic structure and development efficiency, and found that Chongqing’s fictitiouseconomy has the following problems: outstanding bank monopoly, not harmoniousfinancial structure, allocation imbalances of regional financial resources and otherissues; For real economy, investment growth phenomenon is outstanding, the industrialstructure is unreasonable, unbalanced regional development and the problem of increasing income gap between urban and rural areas. Using the capacity couplingsystem model theory for reference, then build a coupling coordination degree model ofthe fictitious economy and real economy in Chongqing. The empirical results show thatthe fictitious economy and real economy’s comprehensive development level andcoordination degree is increasing, but the overall level is still low. Finally, based on theabove analysis, this article provides corresponding suggestions like growing regionalfinancial institutions, devise financial center layout, guide the optimal allocation offinancial resources, moderate to strengthen supervision and other aspects, forcoordination development of Chongqing’s fictitious economy and real economy.