Research On The Regional Financial Support To The Economic Development In Shandong Province

Finance had been the core factor in the modern economic development, and finance has become the first drivers of economic development of the region. In the current period when economic develop in a complex and interactive way, the relationship between regional finance and regional economies become increasingly complex and diverse. Therefore, we must attach great importance to finance while developing the regional economics, and so that we can clearly find the value of the finance in the economic development. In recent years, there are many researches on finance’s contribution to economic growth, most studies have been done for a whole economy, very few people did a research for a separate part of the economy. Unlike the previous researches and analysis on the entire country or the financial and economic relations among several countries, but only focus on the Shandong Province, as a separate analysis and study of the area. Shandong Province is one of China’s regions with highest economic development level and best competitive ability, facing the situation where finance play a more and more important role in the economic development, in order to sustain the current high speed economic growth in Shandong Province, the development of the financial sector is particularly important.Taking the regional financial and regional economic theory as basis, the regional economics research perspective, and Shandong Province as the research object to explore the relationship between the regional finance and area economic development.Firstly, this article lay a theoretical foundation of this issue, after that, explain the financial status and the economy development of Shandong Province, using the available 1997-2012 data to analysis how the existing financial development influence economic growth in Shandong Province, select representatives of economic growth and financial development indicators in Shandong Province, the use of econometrics, multiple linear regression model, using a single integration test, co-integration test,Granger causality test measurement methods for empirical research.Empirical research findings show that there is a long-term Co-integration relationships between financial development and economic growth of Shandong province, and One-way causal relationship between financial development and economic growth, the development of finance can promote the economic growth in Shandong province. In order to further develop financial support roles in economic growth, on the base the previous analysis and empirical analyses, and make relevant policy recommendations, to promote regional financial development in Shandong province.