The Relationship Between Financial Development and Economic Growth In Western China

Abstract

This article analysis western region 10 provinces from 2010-2015 panel data analysis and found that financial development and economic growth: the provinces on the overall financial development and economic growth of high positive correlation, financial development has strong role to economic growth, especially in Guizhou, Shanxi, Yunnan. In addition, the contribution of financial capital to economic growth is greater in cities where financial development is driving economic growth. Therefore, the government provide money and other things region，it should considered the financial contribution of capital growth, differentiated to funding for western provinces.