Empirical research on the relationship between regional finance development and economic growth under structure change A case study of Inner Mongolia

By constructing a vector error-correction model with a structural variable employing data from 1952 to 2008 of Inner Mongolia, the paper investigates the relationship between finance development and economic growth in this region, and the influence of system transition on this relationship. Our main results are that finance development doesn´t support economic growth strongly in the region, however, economic growth promotes finance development remarkably. Meanwhile, system transition imposes significant influence on the relationship.