Study On The Influence Of County Finance On County Economy

County is the core of therapeutic world.County as a link between urban and rural areas,its economy development level,industrial structure and urbanization level directly determine the county's the process of industrialization,informatization,urbanization and agricultural modernization,and the sustainability of the global economic development.Finance is the core of modern economy.It is an old topic that county finance supports for county economic development,but in the face of new situation,in order to improve financial services in the county economy,how to take the initiative to adapt to the new normal economic development is a new topic.Hubei,as an important strategy point of midland,which county development will influence the development of the overall hubei.In order to stimulate the county financial vitality supporting economic,the county financial engineering was implemented,and network coverage of the county financial institutions was expanded,and financial services reached the town in hubei province in 2011.However,with the improvement of the county financial system,the county agricultural loan still is small,and financing problem of small and medium-sized enterprise is still not fully resolved.In view of this,considering hubei province county financial credit markets and economic development,the paper analyzes county financial how to influence the county economy basing on empirical research in the new period.The purpose of the article is to analysis how to stimulate better the financial service under the new normal and provide theoretical basis for the relevant government department to make decisions.In order to achieve the research target,through collecting statistical yearbook of hubei county and county statistical bulletin and other relevant data,using the descriptive statistics,this paper analyzes situation of the county economy and the financial development in hubei.Then,it analyzes the capital supply and demand in hubei situation.Next,based on situation,the paper analyzes correlation of economic and finance.Finally,the essay established model that county finance impacts on the county economy,namely fixed effects model,deeply analyzing the relationship of two.The main conclusions of this paper are as follow:(1)According to county financial development level,hubei county financial level is higher than before,and the total deposit and lending grow faster than the economic growth.(2)According to the structure,hubei county financial loan is lower than before,reflecting that the growth of county area total deposits is faster than the growth of total loans.Banks and other financial institutions more emphasis on savings but less focus on county lend.(3)The investments have significant positive correlation for economic growth,therefore,county should pay attention to lending to improve the county economy.The policy suggestions of this paper are as follow:(1)Optimizing the structure of county finance,encouraging financial institutions to service for small and medium-sized enterprise(2)Strengthening the social responsibility of county financial institutions,making local savings for local lending.(3)developing the new county financial services institutions,such as developing consult services specifically to provide loans to small and medium-sized enterprises.(4)further improving county financial system,establishing complete and multi-level financial service institutions.(5)strengthen financial supervision and reduce the cost of loans.