Study On The Effect Of Financial Liberalization In Guangxi

Financial market is the inevitable result of market economy development to a certain stage, it can improve the competitiveness of the financial markets and the efficiency of financial operations, promote financial development and ultimately stimulate economic growth in the long-term stability. Therefore, the financial liberalization has become an irresistible trend in the process of economic globalization. This article is based on financial liberalization reform practice in Guangxi, with financial liberalization impact on the region’s overall economic growth as the theme to carry out the research, try to make improve the effect of financial liberalization in guangxi become the key points in promoting economic growth.First of all, the paper reviews the financial liberalization on economic growth mechanism and theory.secondly, from the perspective of financial institution marketization, financial markets liberalization and opening up of the financial to analyze the present situation of the liberalization of financial development in Guangxi.and found that with the rapid economic and social development in Guangxi, the real economy demand for financial services is becoming increasingly urgent to stimulate the further development of the financial liberalization. Then guangxi financial marketization index is constructed using principal component analysis, also confirmed during this period of financial Guangxi marketization index is a rising state, that financial liberalization reform in Guangxi to be successful and effective.And then based on the measured Guangxi financial liberalization index, We make an empirical test of the effect of financial liberalization in Guangxi, empirica test results confirmed the Guangxi financial liberalization general index and divided index and economic growth exist a long-term equilibrium cointegration relationship.while the financial liberalization short-term effect on economic growth is not significant, financial marketization degree of the three areas of partial impact on economic growth is different. In addition, by the Granger Causal Relation Test also confirmed the total financial liberalization index, divided financial liberalization and economic growth pairwise Granger cause each other, thus proving once again that the financial liberalization in Guangxi have a importion role in promoting economic growth. Finally, based on the practice facts of financial liberalization in Guangxi and article empirical conclusions, put forward policy Suggestions to promote guangxi financial marketization reform process and to perfect the financial liberalization effects on the overall economic growth.