An Empirical Study of Financial Development and Economic Growth in the Yangtze River Delta

Recently, financial development and economic growth become hotly discussed. Finance effect on economic growth is varying with different samples and dfferent time, which has not been seriously paid attention to. Under this premise, panel data model is utilized to analyze the financial development and economic growth of the Yangtze River Delta in the empirical research. The study found that, the effect of financial interrelations ratio to economic was not significant the financial efficiency inhibited the growth of economy, the effect of the development of stock market to economic growth was different in different areas, and the effect of the development of insurance market to economic growth was different in different stages; the intercept in the fixed effects of cross-section and periods reflected the horizontal and vertical degree of the dependent of finance.