Financial Development and Economic Growth in Anhui Province: Granger Causality Test

This paper studies the relation between financial development and economic growth in Anhui province and gets two main conclusions: 1. Financial development does Granger cause economic growth in Anhui province but economic growth does not promote financial development; 2. Capital market does not granger cause economic growth and it is not a desirable market. The paper gives more appropriate explanations to two (conclusions) upon analysis of economic development. The paper suggests that Anhui provincial government should understand interaction between business and government, interaction between business and bank firstly.