The Relationship Between Financial Development And Economic Growth Of Beijing

Financial development and economic growth have been the focus in the field of economic research, and the research of the relationship between them can be traced back to 1960, when Gurley and Shaw published Money in a Theory of Finance. How to promote the coordinated development of finance and economy is the common goal of these studies. China is the world's largest developing country, and its economy ranked top3 in the world. The financial industry, as an important part of the tertiary industry,has played an important role in the economic growth of China, so the study of correlation between finance and economy in our country is very necessary.Since the reform and opening up,China's urbanization process has been accelerating. In this process,the number of cities continues to increase,and the scale continues to expand. Large cities have emerged, and its status of the national economy is increasingly important. It is worth noting that China's large cities have met problems and bottlenecks in recent years, so to speed up the transformation of economic development of large cities is in demand. Based on the qualitative analysis, this paper makes an in-depth study on the relationship between the financial development and the economic growth of China's large cities, which is represented by Beijing. Lastly,suggestions on coordinated development of finance and economy in China's large cities are proposed.The result of this study shows that financial development has a tremendous impact on economic growth in Beijing, especially FIR's impact is significant; Beijing's economic growth on the impact of financial development is not significant. The above results reflect the inefficient operation of the financial system and the allocation of financial resources in Beijing, in addition to economic development may also be affected by financial constraints. China's other large cities may have common problems like Beijing.