PARTICIPATION OF LOCAL GOVERNMENT, REIGION FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: EMPIRICAL STUDY ON SOUTHWEST OF CHINA

摘要

Based on panel data of 4 provinces of Southwest of China during 1999-2014, this paper empirically test the relation between financial development and economic growth on the consideration of local government participation. The regression results shows there is a magnificent, positive relation between independent variables and economic growth in 4 provinces of Southwest of China. And the finance development in past decades has contributed immensely to economic growth. And there is a significant regional deference in the regression results of 4 provinces. So the promotion from finance development in Chongqing and Sichuan has more obvious, notable effect than which in Guizhou and Yunnan province. Local government need to transfer their focus of participation, not only on finance scale, but also on efficiency of financial system. The correct position of government will facilitate more the development of finance and economic growth in long run.