Research on the relationship between economic growth, financial development scale and financial output in Shanxi Province

• Published in: SHS web of conferences Vol. 165; p. 2018
• Main Author: Sun, Rong
• Format: Journal Article Conference Proceeding
• Language: English
• Published: Les Ulis EDP Sciences 2023
• Subjects: Economic development; Economic growth; China; Shanxi China
• ISSN: 2261-2424; 2416-5182; 2261-2424
• DOI: 10.1051/shsconf/202316502018

In today’s economic society, the development of the financial industry plays an increasingly important role in promoting the economy. Throughout the world and domestic provinces, economic development must be accompanied by the development of the financial industry, and the development of the financial industry will further promote economic growth. Therefore, this paper studies the factors promoting economic development from the perspective of financial industry. Combined with the economic situation and the current situation of the financial industry in Shanxi Province, using the time series data from 2000 to 2019, this paper analyzes the relationship between the change of economic growth and the change of financial output and the scale of financial development, constructs a VAR model, and carries out Granger causality test and variance decomposition. The results show that for Shanxi Province, the scale of financial development can promote economic growth and is a two-way causality, while financial output is not the cause of economic growth, and its impact has a negative response to economic growth. Finally, according to the research results, this paper puts forward some suggestions to improve the scale of financial development to promote the economic growth of Shanxi Province.