The Influence Of Financial Development On Economic Growth In Jiangsu Province

As the core of the modern economy,finance plays an important role in economic growth.On the one hand,financial development can promote capital accumulation and optimize resource allocation to promote long-term economic growth effectively.On the other hand,the rapid development of finance also brings risks.In the process of economic growth,it is necessary to prevent and control financial risks effectively.It may cause negative effects on the operation of the financial system itself and the real economy.At present,China's economy has entered the new normal stage,and there are new features in the new stage of economic growth.It requires new ideas and methods to guide it.In order to promote financial services to serve the real economy better,the implementation of structural reforms on the supply side and the exploration of the specific mechanism of financial development on economic growth are particularly necessary and urgent.As a developed province in the Chinese coastal regions,Jiangsu is also a typical province with unbalanced regional economic development.The southern,central and northern parts of Jiangsu are characterized by staircase economic development.South of Jiangsu has a relatively high level of economic development,followed by central Jiangsu,and Northern Jiangsu is relatively backward.As an important part of modern economic operation,financial development plays a key role in the coordination of economic development in a region.Therefore,the development of regional finance in Jiangsu province has long been widely concerned.Under this background,this paper takes the financial development as a threshold variable and uses the panel threshold model of fixed effect to analyze the nonlinear relationship between the financial development of Jiangsu province and economic growth in the period of 1999-2016.The main conclusion is as follows:in the case of different financial development level,the role of financial development in Jiangsu province is different.In particular,when the financial development level improves,the promotion of financial development to economic growth gradually decreases,showing the nonlinear characteristics of marginal reduction.In regions where there is a relatively low level of financial development,financial development will play a greater role in economic growth.Based on this,this research presents some corresponding policy recommendations.