Research On The Interactive Relationship Between Financial Development,Energy Consumption And Economic Growth In Hunan Province

Development is the eternal theme of humankind.However,large amounts of energy consumption have brought resources and environmental carrying capacity to the limit.Domestic and foreign scholars have to rethink the internal relationship between energy consumption and economic development.Finance is the core of modern economic development.Financial institutions have an important influence on economic growth by playing their role in capital allocation,reducing transaction costs,and diversifying risks.Hunan is in an important strategic position of the "One Belt and One Department",and it is currently working hard to promote "four modernizations and two types."However,economic development is constrained by resources and the environment is relatively large.This paper will include financial development,energy consumption,and economie growth in the same framework,from the theory.From the empirical perspective,we explore the interactions among the three parties in order to provide a solid basis for policy makers.This article is divided into five parts.Firstly,this article systematically analyzes the literature and analyzes the existing deficiencies of the existing literature.Based on this,it integrates financial development,energy consumption and economic growth into the same research framework,and interprets the research content and research methods of this article.Second,define the concept of energy consumption,financial development and economic growth,and systematically elaborate the interaction mechanism among the three.Third,analyze the status quo of Hunan's energy consumption,financial development,and economic growth.Fourth,using data from the financial development,energy consumption,and economic growth of Hunan Province from 1978 to 2015,use the ARDL model for empirical analysis to explore the long-term equilibrium relationship and short-term dynamic relationship among the three,and perform robustness checks on the empirical results.Then,the Granger causality test was performed using the method of Toda and Yamamoto(1995)to further confirm the causal relationship between the two variables.Fifth,according to the research conclusions,the policy recommendations are targeted.The empirical results show that:(1)The long-term impact of financial development and energy consumption in Hunan Province on economic growth is significantly positive.(2)The long-term impact of labor force,capital stock,and foreign trade on economic growth is significantly positive.The long-term elasticity coefficient of labor force to economic growth is far greater than the long-term elasticity coefficient of other variables on economic growth,indicating that labor-intensive industries in Hunan account for the comparison.Big.(3)The long-term elasticity of financial development scale in Hunan Province over economic growth is greater than the long-term elasticity coefficient of financial development efficiency over economic growth.This shows that the degree of financial development efficiency in Hunan Province is relatively low,and most of the bank loans are allocated to state-owned enterprises.Private enterprise development Subject to capital constraints.In addition,from the perspective of financial development efficiency,the short-term impact of economic growth on financial development is significantly negative,indicating that Hunan's state-owned enterprises account for a relatively large proportion of financing,and the efficiency of financial development needs to be further improved.(4)The long?term impact of economic growth on the scale of financial development is significantly positive.Economic growth has a significant role in promoting financial development,and this effect is also significant in the short term.(5)The long-term impact of financial development on energy consumption is significantly negative.This shows that under the financial drive,energy consumption in Hunan Province has been effectively controlled,financial development has continued to deepen,and more funds have been directed toward companies with high energy efficiency and low energy consumption,(6)The long-and short-term impact of energy consumption on financial development is not significant.