A Study On Relationship Between Regional Financial Structure And Economic Growth

The development of financial system is closely related to economic growth while the essence of the financial development is due to financial structure changes, so the financial structure has a very important relationship with the economic growth. Especially with the increasing of the financial system openness and the economic environment complexity, great changes have taken place in the economic growth and characteristics and influencing factors of financial structure, and the coordinated development between them has become more and more prominent. In addition, based on different characteristics which are show in different areas in economic and in the process of financial development, the relationship between financial structure and economic growth has its particularity.Based on the research results made by the previous experts and scholars of the relationship between financial structure and economic growth which has been systematically combed, this paper uses analysis methods such as the correlation test, stability test and Granger causality analysis to carry on the empirical research of the relationship between financial structure and economic growth in 31 provinces and cities in China. And on this basis, a transverse comparison among areas is conducted in east, center, west and northeast of the 31 provinces.The results show two points. Firstly, from the total financial amount and with the advancement of China’s financial deepening process, the overall level improvement of the vast majority provinces’ finance has effectively promoted the economic growth. And from the four division level, financial deepening degree is relatively backward in west and northeast, which causes that finance can’t well play a role in economic growth, even to some extent hinders the economic growth. Secondly, from the point of financial structure, as the financial structure is not reasonable and the using efficiency of funds is low in the vast majority of provinces and cities in our country, the existing financial structure cannot promote the regional economic growth well. At the end of the article, according to our country’s deeper financial deepening degree and the present situation of the existing unreasonable financial structure, this article gives the policy recommendations that can be made use of to achieve the coordinated development of regional financial structure and economic growth in China.