Financial Efficiency In Shanxi Province And Its Empirical Research To Support Economic Growth

Since the nineteen major,with the rapid growth of China's economy,the financial industry has developed unprecedentedly.In the development of economy,finance is playing an increasingly important role,the relationship between the two has become a hot topic in academic research,to promote the role of Finance in economy depends not only on the financial scale,more important is reflected in the level of financial efficiency,many scholars believe that the financial efficiency has become an important factor to promote economic growth the.Shanxi province is located in the central part of China.Relatively blocked geographical environment and single resource economic system result in the backward development of economy and finance in Shanxi province.The financial system is not perfect,and the financial efficiency is not high,which restricts the economic development of Shanxi province to a certain extent.How to improve the financial efficiency to promote economic growth is of great significance to the sustainable development of Shanxi's economy.This paper mainly studies the financial efficiency and economic growth of Shanxi province from four aspects.First,summarize the research status of financial efficiency at home and abroad,and make a brief review.Secondly,the economic growth theory,financial development theory,financial efficiency and economic growth mechanism are sorted out and explained,providing theoretical support for future research.The second part: draw on the existing literature to define the concept of financial efficiency,and formulate the financial efficiency evaluation system of Shanxi Province,and the evaluation method.The evaluation system is divided into three categories: Savings mobilization rate,savings investment conversion rate,investment direction rate.By using the factor analysis of the 10 sub index program three indicators for empirical analysis,the comprehensive evaluation of Shanxi province from 2000 to 2016.The results show that the Shanxi Province financial efficiency,financial efficiency,the overall upward trend,but the three indicators,the mobilization of savings rate and the savings investment conversion rate is rising,investment rate is relatively weak that is very weak and needs to be further improved.Then,through the selection of the financial efficiency index of Shanxi Province,the empirical analysis is further carried out with the economic growth.Taking the data from 2000 to 2016 in Shanxi Province as the research sample,we build the econometric model,and select three explanatory variables through the correlation analysis with Shanxi's economic growth,which are savings rate,capital proportion to total savings and marginal capital productivity.The final regression equation between financial efficiency and economic growth,through the analysis of the regression equation,the mobilization of savings rate,savings investment conversion rate and investment rate was positively related to economic growth,the savings investment conversion ratio had the strongest correlation,savings mobilization rate second,investment rate.The same conclusion is drawn from the second sector that the investment investment rate is a weak link for Shanxi's economic development and needs to be further improved.The last part,Based on the analysis results,it puts forward some suggestions on how to improve Shanxi's financial efficiency and promote economic growth.The specific suggestions are to optimize the industrial structure of Shanxi,improve the financial service system of villages and towns,speed up the process of local urbanization,improve the social security system,improve the capital market of Shanxi,improve the credit environment of Shanxi,deepen the reform of state-owned enterprises,and provide a platform for the development of non-state-owned enterprises.