Financial deepening and regional economic growth based on the analysis of China's inter-provincial panel data

Based on the theory of financial deepening, after analyzing the impact of financial deepening on the regional economic growth, and using the panel data of China's 27 provinces from 1995 to 2007 and STATA10.0 software, this paper has researched the effects of China's financial deepening to the regional economic growth empirically. Results showed that the positive impact of financial deepening on economic growth mainly reflected in the later period, the factors such as the capital securities affect economic growth in the opposite direction insignificantly, which means that in the past few years, the development of China's stock market had limited the effects to the economic growth.