Study on the Relationship Between Regional Financial Efficiency and Economic Growth in China

摘要

Based on the panel data of 31 provinces in China from 2003 to 2015, this paper uses VAR model and PVAR model to contrastive analysis of the relationship between regional financial scale, financial efficiency and economic growth in China, and compares the differences between the impact of regional financial development on economic growth in eastern, central and western regions. The results show that the improvement of financial efficiency can promote economic growth both from the national and the regional perspective, but the effects are different. On the other hand, economic growth is also a major contributor to the expansion of regional finance scale and the improvement of financial efficiency.