Research On The Impact Of Regional Financial Development On Economic Growth

As a core for modern economic growth,finance's role in economic growth has always been the focus of academic research.Through the combing of the current research,it is found that China's financial development shows obvious regional differences.Therefore,based on the financial and economic related time series data of Sichuan Province from 2006 to 2017,this paper discusses the impact of economic development on economic growth and its influencing factors from the theoretical analysis and empirical analysis.This has important theoretical and practical significance for regional related research and financial development and economic growth in Sichuan Province.In the theoretical research part,firstly,the historical analysis and the deductive reasoning method are used to sort out the theoretical analysis basis of Sichuan's financial development and economic growth.Including the review and collation of relevant research in the past;defining the concepts and connotations of finance,financial development,regional financial development,and economic growth;this paper systematically sorts out financial suppression theory,financial deepening theory,financial function theory and endogenous economy.The development and connotation of the theory of growth theory.Secondly,based on the existing research and related theories,the paper analyzes the mechanism of financial development on economic growth and lays a foundation for subsequent empirical research.Finally,based on the data of banks,securities and insurance,the paper analyzes the status quo,characteristics and trends of financial development in Sichuan Province,and the impact of Sichuan's financial development on economic growth.In terms of empirical research,this paper abandons the traditional regression research method and uses the coupled analysis method and the gray analysis method to analyze.This analysis method can directly measure the degree of correlation between things and directly reflect the analysis results.In terms of specific content,the evaluation index system of financial development and economic growth was selected for the banking,insurance and securities industries,and the indicators were processed by the entropy method.On this basis,the coupling analysis model is used to calculate the coupling degree and coordination degree of financial development and economic growth in Sichuan Province,and the relationship between the two in different periods is analyzed.Then,the grey relational analysis model is used to calculate the graycorrelation degree between financial development and economic growth in Sichuan Province,and the influence factors of financial growth on economic growth and the influence effects are analyzed based on the grey correlation degree.Through theoretical and empirical research,first of all,the banking industry plays a role in economic growth mainly by affecting the savings rate,the conversion rate of investment to investment and the efficiency of capital output.The securities industry mainly affects economic growth by influencing economic structure,stimulating social consumption,and reducing market risks.The insurance industry affects economic growth by managing and diversifying risks,reducing transaction costs,promoting capital accumulation,and increasing investment conversion rates.Secondly,the scale and structure of finance in Sichuan Province have been greatly developed and the current development status is good,but the financial efficiency is not very high,because the main financing methods in the society are still mainly Through the bank,Sichuan's finance has not yet fully utilized its functions.Thirdly,the numerical values of the coupling and coordination of financial development and economic growth in Sichuan Province indicate that the two are at a high coupling level for a long time,but the coordination relationship between the two has undergone four stages of change in the sample year,from a slight imbalance The process of dystocia,primary coordination,and intermediate coordination and gradual development shows that the financial and economic growth of Sichuan Province has gradually evolved from uncoordinated relations.Finally,the analysis results of the gray correlation analysis model show that financial development in Sichuan Province is an important factor in economic growth.However,the effects of various indicators are different.The most important effects on economic growth are financial depth,insurance density,density of listed companies,and the effect of density and insurance density of listed companies on economic growth.The effect is the best,and the financial depth has a significant impact on the economic growth structure.Based on the results of theoretical and empirical research,through the summary and reference to relevant research,the policy suggestion of this paper is that Sichuan Province should focus on improving the efficiency of the financial system,building a diversified financial system,and improving the openness of financial markets;The capital market,expand the scale of the securities industry and the insurance industry,adjust the credit structure of the banking industry,and improve the efficiency of capital allocation.At the same time,it should also strengthen financial supervision and policy support,strictly control the risks of the financial market,and guide financial innovation and development.To create a good financial environment for economic growth.