Study Of The Deepening Of China's Financial Performance And Economic Conditions

Because the finance is looked upon the first power to promote the economic growth,so on theory,the relationship between the finance and the economic growth is always the focus debated by the economists;on practice,from the "financial depth theory" was put forward by Mckinnon and Shaw in 196CK 1970s,the financial reform has become the mostly policy choice for many developing countries to promote the economic growth . In China,act as one of the most important part of the economic reform,the financial reform has gone across more than twenty years .But compared to the final purpose of the "financial depth theory",there are too many course to finish for China s reform .By all appearances,it is important to realize the characters-,performance and economic environment for the proper decision,and this is the main subject of this paper .The main content is following as this:In the first part (chapter 2),we define the research content through the analysis about the financial process of the economic growth and the criticism to the "financial depth theory". In-fact,it is based on the fact that economic of the developing countries is intersected,which makes Mckinnon and to put forward the "financial depth theory". Its main content is to improve the capital stock level and the capital using efficiency through increase the people's optical level of holding money .For this,Mckinnon and Shaw put forward some material measures and they pointed out that there are inherent logicality among these measures,it means that there is material economical environment request for each measure.But just like other theory,because the real economic is too complexity,the "financial depth theory"is not perfect too .In order to fetch up its shortage,we do two works:the first is analyse the characters of the efficiency financial system through the dynamic economic growth model,the second is to analyse all kinds of critical theory to "financial depth theory".Based on this,finally we defined the content involved by this paper,which includes two parts:the first part is to review the characteristics and macroeconomic performance of China;the second part is to analyze the feature and performance of China's financial depth based on the "financial depth theory".For this,we will investigate the macro sects and the each measures in the same time .The third part is to analyse the financial structure and the financial risk which is the other index to measure the performance of financial depth .In the second part (chapter 3,4),we analyze the the characteristics and macroeconomic performance of China.In this part,we first review the basic status of China's financial depth according to the index system which was put forward by Shaw (chapter 3) . Then we compare the results to the expect results on theory and in this we find some features of China's financial depth. From the change of trend index of the flux and the deposit,we can find that there are some consistent and not consistent between them .Moreover,there are some contraries about the deposit and the flux,which is hereafter proved by the cointegration test among the index .In the following research,we analyze the macro performance of financial depth through the economic growth effect of the interest rate and the money deposit (chapter 4). For the interest rate,we divide two conditions:one is based on Harrod economic growth model,which reviews the economic growth effect and the investment efficiency of the interest rate;the other is based on the fact that the economic is divided,which is a test of the "financial depth theory".The results show that the saving effect is more strong than the investment effect. Moreover,the saving effect is weekend because of the dividing fact of the economic,and this validates that the "financial depth theory"is right .We also analyze the financial performance through joining the money deposit to the product function .The results show that the degree of financial depth has the different effect for the different firms which have the different property right .Commonl...