Empirical Analysis of the Relationship Between the Function of Financial Sector and Local Fiscal Revenue-Take the Example of Guangdong Province

This paper analysis the relationship between the function of Financial sector and local fiscal revenue base on the date from 1985 to 2012 by VAR which belongs to Econometrics. The research finding is that: there is co-integration relationship between the fiscal revenue of Guangdong province and loan balance of financial sector. When the financial loan balance rise up a percent, Guangdong fiscal revenue will rise up 0.3033 percent. Besides, the fiscal revenue of Guangdong province is the cause of financial loan balance, but the vice is not set up. The findings demonstrates the mistaking function of public financial and financial, which leads to that local financial loan balance fails to promote the development of economics. At last, the article makes explanation of the findings and put forward some advices.