Can social financing promote economic growth?—Empirical study based on the evidence of Fujian Province, China

The role of social financing as a catalyst for financial growth, with potential to stimulate economic expansion, is a subject requiring further scrutiny and exploration. This study employs quarterly data from 2014 to 2023, encompassing social financing and economic growth patterns in both China and its Fujian Province. Through the construction of four OLS models and a VAR model, it has been determined that the extent of social financing within Fujian has a notable impact in enhancing regional economic growth, though the direct financing percentage proves to be insignificant. The research suggests that middle-income economies have the potential to increase their social financing scale. Relevant governmental bodies can facilitate economic progression by broadening enterprise financing avenues and altering the ratio of direct financing in social financing as per the actual requirements.