Relationship between the Development of Financial Industry and Coal Industry in 12 Western Provinces of China

In this paper, we use 12 provinces in western China (Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang) as research subjects to test the relationship between coal mining and washing industry and financial industry development. Based on industrial development theory and finance development theory, a panel data model is build. The results show that the spontaneous growth of coal mining and washing industry in the 12 western regions is positive. The financial development of Inner Mongolia, Chongqing, Guizhou, Guangxi, Shaanxi and Xinjiang has obvious effect on the development of coal mining and washing industry, which shows that the development of financial development and coal mining and washing industry in these areas is matched and formed a virtuous circle. On the contrary, the financial industry in Guangxi has developed well, but the coal mining and washing industry is lagged behind. Therefore the financial development in Guangxi area on the local coal mining and washing industry development is not strong.