Research On The Influence Of Informal Financing For Economic Development In Hohhot-baotou-ordos Economy Encircles

Informal financing is not only a theory issue worth studying in the academic circles, more is a major concern reality in the whole society. In China, because of the market economic system is not perfect, imperfect financial system, unbalanced development of capital market and other factors, makes no free flow of capital factor, regional capital flow by the system of constraints, leading to the existence and development of informalfinancing. Since the establishment of the development strategy of characteristic economic circle construction to Hohhot-Baotou-Ordos as the core in Inner Mongolia, the three cities with their own advantages and mutual close economic and social ties, the economic growth has a great leap forward development, regional economic strength has increased markedly, the non-public sectors of the economy developing rapidly. At the same time, in Hohhot-Baotou-Ordos economy encircles, informal financing is gradually active, becoming the most active areas of informal financing in Inner Mongolia, and is playing more and more important effect on the rapidly development of regional economy. But, the informal financing can alleviate funds contradiction of supply and demand, promote the development of small and medium enterprise, also can bring certain negative impact on the stability of economic development and the safety of society. Needless to say, the informal financing has a huge scale and its contribution to regional economic development is enormous in Hohhot-Baotou-Ordos economy encircles. So what the hell is the scale of Hohhot-Baotou-Ordos’ informal financing and what’s the causal relationship between informal financing and economic growth? Most scholars do qualitative analysis or survey on this issue and draw significant conclusions. But as a result of informal financing’s concealed characteristics, the survey is very difficult, and the results are inconsistent with the actual situation. According to this background, based on the qualitative analysis of informal financing in Hohhot-Baotou-Ordos economy encircles, from another perspective this paper use indirect estimation method and the governmental macro-statistics calculate the scale of informal financing, then it does empirical analysis of the relationship between the informal financing and economic growth by econometric methods, and through the way of questionnaire further study on the influence of informal financing for economic development in Hohhot-Baotou-Ordos economy encircles.The full text is divided into six parts. First, the paper briefly introduces the background and significance of the topic, research methods and contents, then analyzes the domestic research on the status of informal financing and related literatures. Then the second part states the capital flow theory and analyzes the development of informal financing under capital flow constraint. This part does the theoretical groundwork for following study. The third part uses the questionnaire survey to analyze the status, characters, reasons and problem of informal financing in Hohhot-Baotou-Ordos economy encircles. On the basis of reading an abundance of literature, the fourth part uses indirect estimation method with the governmental macro-statistics calculate the scale of informal financing in Hohhot-Baotou-Ordos economy encircles from2000to2012. The results show that the scale of informal financing in this region is huge, and it has maintained a rapid growth trend. Then uses Granger causality test on the relationship between the informal financing and economic growth by establishing mathematical model. And we concluded: in Hohhot-Baotou-Ordos economy encircles, the informal financing and economic growth exist significant one-way causation. It has important significance for further study. The fifth part through the questionnaire survey way, based on the social evaluation of informal financing role, analyzes the positive and negative effects of informal financing on regional economic development. Finally, in the sixth part, the paper gives out some measures and recommendations for guiding and regulating the informal financing, promoting economic development in Hohhot-Baotou-Ordos economy encircles.The paper draws a conclusion that active informal financing is the result of the regional capital flow constrained by the system, is a realistic choice of the shortage of formal financial institutions, it emerged and developed necessarily. In the course of regional economic development, informal financing not only plays positive role, but also has negative impact to the regional economy and macro regulation. Therefore, for the development of informal financing, we should make a discriminating with its advantages and disadvantages, rather than suppress and ban it. Under the joint efforts of the local government, financial regulators and the informal financing its own, we should actively guide and regulate the development of informal financing, make it really serves for the development of regional economy.