Research on the Relationship between Financial Development and Real Economic Growth in Qinghai Province

Abstract

With the acceleration of the process of economic financialization, the financial industry has become an important force in the development of China's national economy However, in recent years, the imbalance between the development of the real economy and the financial industry has become increasingly intensified, and has become an important factor restricting China's economic growth and regional financial development. The academic research conclusions on this issue are not uniform, which urgently calls for an enhanced empirical study of the relationship between regional finance and the real economy. We use the long panel data of Qinghai Province from 1985 to 2017 to analyze the relationship between Qinghai's financial development and economic growth from various perspectives. Empirical analysis shows that, financial development is a significant factor affecting economic growth. In addition, fixed asset investment, education level and urbanization level also has a significant positive effect on economic growth. But government expenditure and foreign trade have had a negative impact on economic growth.