The relationship between financial development and economic growth

Based on the financial development and economic growth in the country panel data analysis, we found: financial development and economic growth in general presents a strong positive correlation because of the different economic base around the large differences among regions. Overall, the eastern region to promote the role of financial development on economic growth is strong, and the central and western regions to promote the role of financial development on economic growth is weak, which can be interpreted as a higher level of financial development is more strong to promote economic growth. Therefore, the government should increase financial support and preferential policies efforts.