Abstract

Financial development will promote the enterprise innovation to a certain extent, in this study, we analyze how financial development effect on economic growth, especially in food processing industry. The result shows that: First, financial development will promote the food processing industry in short time, but this effect will reduce gradually in the long time. Second, financial development is the granger reason to food processing industry and there exist a long-term equilibrium relationship between them. From the VAR model, we can get that financial development will promote food processing industry growth. LnFIR at lag 1 period increased one percentage can drive LnFPE growth by 1.361 percentage, LnFIR at lag 1 period increased one percentage can drive LnGDP growth by 0.942 percentage, so the effect of financial development on economic growth is obvious.

Keywords:

Economic growth, empirical analysis, financial development, food processing industry,

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Competing interests

The authors have no competing interests.

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The authors have no competing interests.