Research On The Relationship Between Financial Developme Nt And Economic Growth Of Underdeveloped County In Guangdong Province

County,as a hub between urban and rural,its econo mic development is the key to achieve a comprehensive well-off,promote new urbanization and solve the "three rural" problem.In 2015,the C hinese government put forward the concept of structural reform on the supply side for the first time on the adjustment of economic structure.As one of the five major elements of supply-side reform,the operation of capital has taken an important mission.As a tool for leveraging capital,financial development and reform is the solid backing for county economic growth and structural adjustment.To achieve a comprehensive well-off county and promote the new urbanization,overcoming the economic short board which called the problem of underdeveloped county economy is the key.This paper chooses the Guangdong area as the object,and studies the influence of the financial development on the economic growth in the underdeveloped counties.It not only concentrates the serious problem of the gap between rich and poor in our country,but also has the local characteristics.According to the status quo of financial development and economic growth in the four major districts: Pearl River Delta,Eastern Guangdong,Western Guangdong and North Guangdong mountain area,this paper finds that the underdeveloped counties in Guangdong are mostly in the early and middle stages of industrialization,facing the problem of the false industrial structure advanced,industry development homogeneity,and domestic demand shortage,etc.Especially,the level of economic of North Guangdong mountain areas is lowest among the four districts,far behind from the more developed Pearl River Delta counties.Therefore,this paper chooses the North Guangdong mountain areas to represent the underdeveloped counties in Guangdong Province,and discuss the irrational financial supply,demand imbalance and the irrational financial structure of the underdeveloped counties.According to the theoretical deduction,the relationship between county financial development and economic growth can be divided into three main types: mutual influence,one-way influence and weak correlation.In this paper,financial development will be divided into two aspects: financial scale and financial efficiency,by using the county economic data of North Guangdong mountain areas from 1999 to 2014.This paper studies the impact of financial scale and financial efficiency on the economy in the underdeveloped county.The generalized moment estimation(GMM),impulse response,variance analysis and Granger causality test were carried out by using pa nel vector autoregressive model(PVAR).Finally,by comparing the correlation and causality of financial development and economic growth in the more developed counties in Guangdong,we can discover the path of improving economic development in Guangdong underdeveloped counties.The empirical results show that the economic growth in the North Guangdong mountain areas is mainly affected by its own,while the financial efficiency has a positive impact on the next period of economic growth,but the negative impact on the cross period.Financial scale has a positive impact on economic growth,but not significant.In the long term,the economic growth of North Guangdong mountain areas is dependent on its own deferred effect,while the financial efficiency has a ne gative impact on economic growth.At the same time,the contribution of financial efficiency to economic growth has been keeping increasing,but has not surpassed the role of economic growth itself.According to the Granger causality test,the county econo mic growth in the North Guangdong mountain areas is the Granger cause of the financial efficiency and the financial scale,but only the financial efficiency is the Granger cause of economic growth.O verall,financial development is the one-way Granger cause of the economic growth.For the more developed region,Pearl River Delta,its economic growth is mainly affected by the financial scale and its own positive impact.Financial efficiency has a positive impact on economic growth,but not significant.In the long term,economic growth is positive affected by its own in the early stage while affected by the financial scale in the later stage positively.The contribution of financial scale to economic growth has gradually increased and surpassed the role of economic growth.According to the Granger causality test,in the Pearl River Delta,the county economic growth and financial scale have mutual Granger causality relationship while the county economic growth and financial scale have one-way Granger causality relationship.This paper finds that the financial development of underdeveloped counties in Guangdong is in the late stages.To reach the advanced level,it is necessary to solve the problems of the lack of matching of financial supply and demand,the hesitate to credit from financial institutions and unreasonable credit structure.Based on the research results,this paper draws lessons from the financial development structure,the financial service,the credit guarantee system and the policy finance,so as to deepen the financial reform of the underdeveloped counties in Guangdong and promote the realization of the well-off society Construction,broaden the national underdeveloped county economic reform ideas.