The Impact Of County Financial Developmenton The County Economic Growth

The economy in the county region is the basic unit and the important part of the whole national economy, and also the foundation of our economic development. County economic plays an important role in the development of the regional economy, and even the whole national economy.Jiangsu Province is one big economy province, although the financial and the economic development is in a high level, but they are not in the same step, what is more, the financial and economy development in every district and county is not in the same level. Here, for this thesis, based on Jiangsu Province, we will study the relation between the financial and the economic development in the county region, and discuss how to promote the harmony and synchronous development within Jiangsu Province.Based on the existing research, this thesis firstly clear up the financial and the county economic development status; then on the basis of the economic growth theory, make the endogenous model of the interaction between the financial development and the economic growth; based on the data from45counties and the regions, make the empirical study of the interacting between the financial development and the economic growth with the panel data model. More, during the empirical study, this thesis will choose5variables to explain the GDPPC, they are financial development scale, financial development efficiency, the fixed assets investment production value of the whole society, foreign assets values, actual rate. Among them, mixed OLS method, fixed effects method, random effects method is adopted to regress the model measurement. After a series of comparison and inspection of the models, finding that the fixed effects model gets the best explanation and fitting degree to the model data.The study shows that the financial development can promote the economic growth, but the level is falling behind the economic growth, and this will restrict the fast economic growth; meanwhile, the financial development and the economic growth is out of balance, among which, especially the economic development is serious. What is more, the gap of the financial development and the economic development between south Jiangsu Province and north Jiangsu Province is becoming bigger and bigger. So for the problems existing in the financial development and the economic growth of the county region in Jiangsu Province, the feasible suggestion can promote the common development of the financial and the economy in the county region, meanwhile the regional differences can also be reduced, then realize the harmony development of different regions within Jiangsu Province.