This article includes the empirical analysis which is used provincial statistical data sets. We employ the regression and the causality tests between regional financial development and regional economic growth in China. According to analysis results, first, there are the positive effects between financial interrelations ratio and economic growth in Chinese provincial level. Almost provinces in China have high regression coefficient between two variables. Especially Eastern provinces have more high than others because of their high financial development. It shows that banking loans have positive impacts on economic growth in these areas. But almost provincial financial deepening index have negative effects on economic growth. The financial deepening index in this article are estimated from deposit/GDP ratio.
Second, the empirical analysis not only finds the financial development leads the economic growth but also investigates the economic growth supplies the financial development in Eastern provinces in China. And we show the evidence that there is a causal relationship between the financial development and the economic growth in Central provinces. While in Western provinces only the financial interrelations ratio have positive effects on the economic growth. It also asserts that GDP growth has positive impacts on the financial deepening in Northeastern provinces in China.
As a result, we find that there are interrelationships between the regional economic growth and the regional financial development, also the regional economic growth needs the regional financial development in Chinese provinces.