Empirical analysis on the evolution of banking structure and economic growth in Hubei Province

摘要

According to the statistical data from 1994 to 2009 in Hubei Province, by using co integration analysis, this paper makes an empirical analysis on the relationship between the structure of the banking sector and economic growth in Hubei Province and the study found that there is a long-term stable relationship between them. Through the Granger causality test on the data, it can be concluded that a one-way causal relationship excites between the two aspects. That is economic growth in Hubei Province is one of the reasons of changes in banking structure, and the economic growth is not caused by banking structure. According to our analysis, we found the main reason for this phenomenon is that there is a certain lag in the adjustment of the banking structure to the economic growth, so its effect on the economic growth can not be fully displayed.