<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper constructs a vector autoregressive (VAR) model between the level of financial management and regional GDP. Through the Granger causality test, the panel data at the financial management level and regional economic phenomena are studied, and the empirical distributions in the stationary situation are given by combining the stochastic simulation method. The auxiliary regression equations are established separately for constrained and unconstrained conditions, and the test statistic is constructed to determine whether there is Granger causality between the variables. Finally, from the actual data, a one standard deviation shock is applied to LATS and LGDP, and a response model with a lag of 100 periods is chosen to obtain the impulse response of the level of financial management and regional economic growth. The results show that the impact of the regional economy on the level of financial management is zero in the first period and then increases continuously, reaching a maximum response of 0.0233 in the 49th period, which indicates that there is a bidirectional promotional effect between the level of financial management and the regional economy and that the effect is not very strong but lasts for a long time.</p>
</abstract>

This paper constructs a vector autoregressive (VAR) model between the level of financial management and regional GDP. Through the Granger causality test, the panel data at the financial management level and regional economic phenomena are studied, and the empirical distributions in the stationary situation are given by combining the stochastic simulation method. The auxiliary regression equations are established separately for constrained and unconstrained conditions, and the test statistic is constructed to determine whether there is Granger causality between the variables. Finally, from the actual data, a one standard deviation shock is applied to LATS and LGDP, and a response model with a lag of 100 periods is chosen to obtain the impulse response of the level of financial management and regional economic growth. The results show that the impact of the regional economy on the level of financial management is zero in the first period and then increases continuously, reaching a maximum response of 0.0233 in the 49th period, which indicates that there is a bidirectional promotional effect between the level of financial management and the regional economy and that the effect is not very strong but lasts for a long time.

Application of financial management in regional economic development based on VAR modeling

Guangdong University of Petrochemical Technology the School of Economics and Management

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper constructs a vector autoregressive (VAR) model between the level of financial management and regional GDP. Through the Granger causality test, the...

Application of financial management in regional economic development based on VAR modeling

Published Online: Dec 23, 2023

Page range: -

Received: Jan 09, 2023

Accepted: Jul 03, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01594

Keywords
Financial management, Causality test, Regional economy, VAR model, Impulse response

© 2023 Xiaoyun Li, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Application of financial management in regional economic development based on VAR modeling

Published Online: Dec 23, 2023

Page range: -

Received: Jan 09, 2023

Accepted: Jul 03, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01594

KeywordsFinancial management, Causality test, Regional economy, VAR model, Impulse response

© 2023 Xiaoyun Li, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Financial management, Causality test, Regional economy, VAR model, Impulse response