Research Of Financial Tilt And Its Impact On Economic Growth In Xinjiang

The financial tilt describes the current situation that the indirect financing and directfinancing of a region imbalance on the scale and speed. From previous research andtheoretical point of view, financial has a very significant role in promoting economy. Thispaper aims to study the characteristics of Xinjiang Finance tilt, and analyze its effect oneconomic growth, finally provide policy recommendations to promote Xinjiang’s economicgrowth.Firstly, we use the method of comparative analysis to describe financial tilt features inXinjiang, at the same time analyse the situation compared with that of western countries.Secondly we use empirical analysis by eviews to analyse the stata of financial and economy.In order to ensure the validity of the model, institutional and technical factors were added tothe model as an exogenous variable in this paper. We find that there is a long-termco-integration and positive relationship between " bank-based " financial tilt and economicgrowth in Xinjiang. Even the relationship deviate from the equilibrium in the short term it canbe strench back soon. However, in the short term, direct financing has a positive role inpromoting economy, that is " financial tilt reversal" can promote economic growth in shortterm.Follow the above ideas, this paper is divided into five parts. The first part introduces theresearch background, status and research methods. The second part cards the theory ofeconomic growth theory and finance tilt and the correlation mechanism. Chapter III analysethe situation of economic development and finance tilt feature of Xinjiang. Chapter IVanalyse the impact of Xinjiang’s financial tilt on economic growth by empirical analysis.Based on the above analysis, Chapter V provide the policy recommendations to betterpromote Xinjiang economic growth.