Abstract

With China's reform and opening up and the establishment of socialist market economic system, the financial industry plays an increasingly important role in the national economy, which has become the core of modern economy. In this study, we make an empirical test to analyze how the financial system will effect on the food processing enterprise. The result shows that the financial development increased one percentage can drive the output value of food processing enterprise increased by 0.942%, so the effect of financial system to food processing enterprise is obvious. From Johnson co-integration test, the result shows that there exist at least one direct co-integration relationship between financial system and food processing enterprise, which means that there exist a long-term equilibrium relationship between financial development and food processing enterprise.

Keywords:

Financial ecology, food processing enterprise, granger causality, vector auto regression model,

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Competing interests

The authors have no competing interests.

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The authors have no competing interests.