Study On The Effect Of Financial Development On Economic Growthin Northeast China

With the pace of reform and opening up gradually deepening, regional development strategy of regional development situation has became an important part of the national economic development. A prominent economic contradictions and certain aging phenomenon affects the northeast economic development, our government has realized it and deployed to the revitalization of the northeast economic package. This method is the Chinese government to implement strategy of common development, complementary advantages and interaction, following in the development of the western region and the eastern developed areas since the priority to the development of another big move. Whether northeast old industrial can become the new star undertake link Bohai sea economic zone, the pearl river delta economic zone and the Yangtze river delta economic zone after another development new luminescent spot directly related to the goal of our country to build a well-off society in an all-round way, directly affects the region that the national economy overall layout and economic sustainable development. Marketing economy is the core of the financial sector, this is the theory and practice of economics to determine the relationship.the finance can promote an area and even a country's economic progress.Accordingly, the financial system can profoundly affect an economy growth of quantity.Quality and speed of a country's economy is closely connected with it. So no matter the goal is to promote the northeast old industrial region economic growth, or an area of financial research, such as the northeast economy, carrying on the financial research is a very necessary reality subject.Our economy is made up of many regional economies as a whole, and each region has its own unique economic system. Our country adopted a regional development strategic after reform and opening up in 1978.So, the present regional financial development is imbalance, which makes the regional economic development in our country has the gap between rich and poor and causes a series of problems.The imbalance of regional financial development has produced because of this. From existing regional financial theory to study literature, most of scholars at home and abroad has explored and researched the problem focused on general theoretical and empirical aspects of financial development.Domestic and foreign scholars on the imbalance of regional financial development of the research is still in its infancy. Regional financial development both from theoretical and empirical, needs to constantly summarize and refining, research and validation. This not only can be more intuitive and quickly find the regional financial development rule, but also can make the rules for financial managers and even used by government departments, so as to realize the purpose of improving the sustainability of the regional economic development. In the economic development of northeast old industrial base is to use the local GDP growth as a measure. For financial related metrics, this paper selected the first nine related financial indicators: financial industry value contribution, financial ratios, fixed assets investment, insurance costs accounted for degrees, per capital investment in fixed assets, insurance density, the number of listed companies, bank deposit and loan proportion, stock financing way of degrees, etc.This study selected three northeast provinces of Liaoning, Jilin and Heilongjiang province as the research object, from 1993 to 2013, a total of 20 years as the empirical sample interval. this paper collected the northeast three provinces from 1993 to 2003, GDP growth rate as indicators of economic growth, and eight indexes such as insurance depth and insurance density as indicators of financial development, three provinces in northeast China the role of financial development to economic growth are analyzed, and the selection of data and indicators of selected are relatively comprehensive. This article set model to study the northeast regional financial development to economic growth. When to estimate the model, using the hybrid least squares estimate method in this paper. In addition, in order to guarantee the reliability of the results, at the same time, using the fixed effect model and random effect model robustness test, based on the sample data to estimate to verify the accuracy of the results.