Financial support for research in the economic development of backward areas
|Keywords||backward areas economic growth financial support empirical research|
In the 30 years of reform and opening up, China’s economy has maintaining a rapid growing trend and the local economic development has also been made a certain fruit. However, in the course of the economic development a lot of inevitable emergences on regional issues have come ou. Particularly, the regional differences are the most serious problem. The main problem of the regional disparity among China’s backward areas consists in the gap between the midwest developed areas and the east developed areas. The gap between the two places has been narrowed on the relatively numbers at the call of the western development, but it is still expanding on the trend in absolute numbers. Poverty in backward areas will not only be detrimental to continue the realization of social justice, but also harmful to a harmonious society. For reducing the regional economic disparities and realizing the coordinated development of regional economy, it is necessary to make full use of the role of macro-control in the economy by our government. So, the fiscal policy as an effective tool has an irreplaceable role to play, especially in the issues on regional economic disparities.In this paper, the theory of the economic development in backward areas and the effect of the role of financial support has been reviewed and summed up firstly.Then the backward areas has been definited and identified. Using the hierarchical clustering analysis, the thesis identified backward areas from China’s 31 provinces .And in the relatively backward areas, it selects a representative example of Shaanxi Province.Depending on the economic and financial status and the actual datas of Shaanxi Province, the thesis makes a Granger causality test and VAR model to analyze relationship between economic growth and the financial support in backward areas.It determines the effect on economic growth by financial supportdan, compares the financial support to the backward areas of economic development and the national financial support .It comes to a conclusion that role of financial support to the backward areas is not obvious, the impact is small and low-efficient. And many problems exist in financial support,which have become the bottleneck to the economic development in backward areas. Finally, it bring out the financial policy including expenditure and revenue for promoting the economic growth in backward areas,changing the current situation in these areas,and playing the role of financial support.