The Study On The Relationship Between Allocation Of Financial Resources And Economic Growth In Sichuan Province

Financial and economic relationship has been one of the center point of economic study since a long time ago, many economic and financial scholars have researched in this question from different angles and different levels. As the growth of the process of economic financialization, finance has became a significant factor in the economic growth, during which its resource properties has been revealed. Professor Bai Qinxian of Liaoning University was the first scholar in China who proposed the concept of financial resources, and opened another way for the study of the financial and economic relations. Many started to ask comprehensively-did financial resources and its configuration really played a positive role in economic growth? And if the answer was yes, what is the path of this process? The answers varies from different research time and different areas, which inspired us to ground our research scope in the most important province in western China-Sichuan, and have a deep research about the relation between economic growth and financial resources. We can also prove the necessity of our topic by the principle of "Finance serves the economy", which has been proposed as the first principle of financial development by the premier Wen Jiabao in the National Financial Work Conference in2012.We quoted the theory of financial resources as the start of this paper, defined the financial resources and its connotations. To link the financial resources and economic growth, we also introduced some traditional financial-economic theory and economic growth theory, explored the path of how economic growth could be effected by the allocation of financial resources, on the basis of which, we designed a judging system of the efficiency of financial resources allocation. In order to discover the deficiency of financial resources in Sichuan Province, we also used this judging system as standards to examine the actual situation of the allocation of financial resources in Sichuan Province using the data from the year of1997to2011. At the same time, we tried to discover the uncoordinated part among economic growth and financial resources in Sichuan province by using some econometric test method, like Johansen cointegration test and Granger causality test. At last, we proposed some advises for better disposition of financial resources according to the insufficient and uncoordinated parts found above, achieved our intent of finding ways of better financial service for the economic growth.According to the structure listed above, the major findings of this paper are as follows:1, Financial resources is a broad concept which include the primary level of currency and capital, the middle level of financial institutions and instruments and the highest level of the interaction between each part. The special character of "power resource" has made financial resources the most important factor in economic growth. It means not only to increase the quantity but also to improve the quality for optimizing the allocation of financial resources. The three main paths for the financial resources to affect economic growth are the savings rate, the savings and investment conversion ratio and the marginal product of capital;2, Sichuan Province has made great achievements in economic growth and the increasing of financial resources since1997. But compared with the national average, some problems still exist:credit resources had made up an excessive proportion of the total amount of financial resources; the usage of the credit resources was insufficient; the development of stock market and insurance market was lagged; the stability of the foreign capital needs to be strengthened; etc3, The Cointegration test of economic growth and financial resources showed that long-term cointegration relationship has really been existed between the two factors of Sichuan Province. The further granger causality test also showed that the relationship of economic growth and financial resources could be catalogued to the style of "Supply guide", that is to say the expansion of financial resources and the improvement of the efficiency of the allocation of it were the Granger cause of economic growth, but the otherwise couldn’t be established. To make it more clear, the increasing amount of financial resources and foreign capital had played a positive role in economic growth while the allocation of credit resources and development of direct financial market had played a negative role;4, Based on the empirical analysis, we put forward four advises to optimize the disposition of financial resources and to accelerate economic growth in Sichuan Province:First, speed up the establishment and development of various financial institutions to increase the total amount of financial resources; Second, reduce intervention by the macro-level, reform structure by the moderate-level and innovative services and technologies by the micro-level to improve the allocation efficiency of credit resources; Third, increase the amount of potential listed companies, extend the service scope and depth of the securities companies and strengthen publicity work of insurance to develop the direct financial market; Last, stress the "technology spillover effect" of foreign capital to deepen the use of foreign investment.