An Empirical Study On The Impact Of Financial Deepening In Jilin Province On Economic Growth

In recent years,with the changes in the external environment and China’s economic development entering the “new normal”,the growth rate of the national GDP and the GDP of Jilin Province has slowed down,especially the total GDP of Ji lin Province has declined successively in the country.How to effectively promote economic growth and find new ways of economic development is the number one priority today.In 2019,General Secretary Xi Jinping pointed out at the study meeting of the Political Bureau of the Central Committee that finance is an important core competitiveness of the country,deepen the understanding of the international and domestic financial situation,correctly grasp the nature of finance,deepen financial supply-side structural reform,and balance stable growth to prevent risks,deepen the reform of the financial system,optimize the structure of the financial system,financing structure and financial markets,and effectively improve the ability of financial services to the real economy.This article combs and introduces the relevant theories of financial deepening and regional economic development and relevant literature from domestic and foreign scholars,then Financial deepening analyzes the mechanism of economic growth,and expounds and comparatively analyzes the financial and economic status of Jilin Province.Based on the above theory and current situation analysis,using the individual fixed-effect model to analyze the panel data of nine prefecture-level cities in Jilin Province for a total of 18 years from 2000 to 2017,the impact of financial deepening on economic growth in Jilin Province was analyzed,and the following conclusions were drawn:First,the financial deepening of Jilin Province has a significant positive role in promoting economic growth.Under the conditions of controlling other economic variables,empirical analysis shows that financial deepening(FD)optimizes the allocation of resources in the province and realizes the accumulation of capital,Effectively promoted economic growth,but due to the limited level of development of the financial system in Jilin Province,the structure is single,and there is no reasonable and perfect system,thus limiting the impact of the financial system on economic growth,so in the future,we must actively promote the financial system of Jilin Province The construction of the economy will further enhance the role of finance in the economic development of Jilin Province.Second,through empirical analysis,it is found that social material capital accumulation in Jilin Province plays an important role in promoting economic growth.The ratio of government fiscal expenditure to GDP,that is,the degree of government intervention in the economy,has a significant negative effect on econo mic growth.The degree of opening up of Jilin Province,the impact on economic growth is not significant.