The Mechanism And Empirical Study Of Financial Services Industry On Economic Growth

Working as an important impetus of economic growth,financial service has always attracted the attention from international and domestic scholars.It not only has the function of pooling capital,but also can regulate the economic structure.Therefore,the study of this issue has far-reaching theoretical and practical significance.Currently majority of domestic research mainly focuses on province level.Considering the large differences between regions in China,macro-level research has not been significant enough to guide the development of regional financial services.In order to make the research result more specific and countermeasure more operable,it is necessary to conduct the research in a certain economic region.Zhengzhou is the core city of the Central Plains Economic Zone.In 2017,the total production value of Zhengzhou was 913.02 billion yuan,an increase of 8.2% over the previous year.The value-added of financial services industry was 98.61 billion yuan,accounting for 10.8% of GDP.On December 20,2016,the National Development and Reform Commission released the “13th Five-Year Plan” for Promoting the Rise of the Central Region to support Zhengzhou construct the national center city.The support of national policies has provided a golden opportunity for the development of Zhengzhou.Therefore,at this stage,it is significance to sort out the relationship between the development of the financial industry and economic growth in Zhengzhou.This first is summarizes the relevant literature.Secondly,it analyzes the status quo of the development of the financial service industry in Zhengzhou and the current economic development status,and compares several indicators in the three regions of Zhengzhou,Wuhan and Xi'an.The study found that the degree of economic development and the development of the financial services industry in Zhengzhou are generally good,but the financial services industry has lagging behind.Then,an empirical analysis was carried out.Financial-related ratio(FIR)and financial intermediary efficiency(FAE)were selected as indicators for measuring financial development.Per capita GDP was selected as an indicator of economic development.Empirical tests showed that per capita GDP of Zhengzhou was financially related.Both the ratio(FIR)and the financial intermediary efficiency(FAE)have a long-term and stable equilibrium relationship.Finally,it proposes four policy recommendations:optimizing the financial development environment,implementing dislocation development strategies,vigorously developing the local financial industry,improving the efficiency of resource allocation of the financial system,supporting small and medium-sized enterprises,and stimulating financial vigor.