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Based on the panel data of China during the period of 2000 to 2013, this paper empirically tests the effects of regional financial difference on economic growth, especially on the consideration of government participation. Our empirical evidence suggests that efficiency of financial system has a negative and significant effect on economic growth in 8 regions, but finance amount had different effect. And the amazing progress in GDP resulted mainly from fixed assets investment. Empirical results reports the effect of government participation has diverse effect on finance scale or finance transition efficiency in different regions. Government need choose appropriate approach to promote finance development according to different circumstance and conditions.

The role of government in region difference of financial development and economic growth: Empirical study on China evidence