An Empirical Study on Relationship between Finance Structure and Economic Growth in Shandong Province

The relationship between financial development and economic growth has become focal point for a long time,but the research about financial structure and economic growth is relatively lagging.The financial structure will play more important role in economic growth compared to the financial scale.The paper analyses relationship between finance-structure and eco nomic growth based on the co-integration theory.The empirical research reveals that there is co-integration in finance-struc ture and economic growth in long term.Loan structure and economic growth exists two-way causality,but economic growth and financing structure evolution does not exist causality and bank concentration changes do not constitute the reasons for the growth of the economy.