An Empirical Analysis Of Economic Structure,Banking Market Structure And Economic Growth

The banking system is an important part of the financial system and plays a leading role in the financial system.There is a close relationship between the financial system and economic growth,so it can promote economic growth by optimizing the financial structure.In particular,since reform and opening up in 1978,China's banking system has undergone great changes,gradually evolving from the oligopolistic type of the four major state-owned commercial banks to a monopolistic competitive structure where various financial institutions coexist,and at the same time,China's economy has also experienced rapid development.So is there a causal relationship between the structure of the banking market and economic growth?For this problem,this paper takes Shandong province as the research object to carry on the empirical analysis to the relationship between the banking market structure and the economic growth.Based on the time series data from 1996 to 2015 in Shandong province,this paper makes an empirical analysis of the relationship between economic structure,banking market structure and economic growth in Shandong province.The CRL4 bank credit concentration and the EB bank efficiency were selected as indicators to measure the banking market structure,and the proportion of state-owned industry(GY),non-state-owned economy(FGY),and heavy industry(ZGY)were used as indicators to measure the economic structure.The cross-section of the economic structure and the banking market structure is used as a measure of the degree of compatibility between the economic structure and the banking market structure,and it also introduced control variables such as government fiscal expenditure(GOV),total capital(INV)and financial development level(FDP)to study the relationship between economic structure,banking market structure and economic growth.The empirical results show that:(1)There is a low positive correlation between the concentration of loans in the banking market structure and economic growth;There is a negative correlation between the efficiency of savings and investment in the banking sector and economic growth.(2)The cross-factors of the economic structure and the banking market structure are consistent with expectations,that is,in order to promote economic growth,the higher proportion of the state-owned economy and the heavy industry,a more concentrated banking market structure needed to adapt to it;the higher the proportion of the non-state-owned economy,the more competitive banking market structure can promote economic growth.In order to promote the economic growth of Shandong province,we should adapt the banking market structure to the economic structure,so we should proceed from the following three aspects:optimize the banking market structure to adapt to the economic structure;improve the efficiency of the banking industry to support economic structure reforms;Deepen the reform of the economic structure and strongly encourage and support the development of the non-stated economy and heavy industry.