Internal Correlation And Effects Between Financial Development And Economic Growth: An Econometric Analysis

The importance of the question of economic growth lies in its relevance to a nation's well-being and the interesting point concerning the question lies in the unpredictable nature of influential factors and the operating mechanism of economy growth. The importance and the interestingness of economic growth researches also result from those conclusions of rich inspirations frequently obtained from the research work. According to a large amount of observation and analysis, the speedy industrialization and duration economic growth in developing country mainly depend on population increment, capital accumulation, the using of new-tech, and the regime innovation and it accompany with the continual transformation and upgrade of economic structure during the economic growth.Shifts of focuses of research orientations, from the original increase in labor and capital amount to technology advancement and development of labor's quality, from the functioning of material capital to the development and exploitation of human resources, and from increase in various invested factors to increase in efficiency of resources allocation of the enhancement and the functioning of organizational management in factors'integration, have all reflected the deepening understanding of people concerning the relative status of various economic growth factors in the economy of knowledge. Therefore the starting point of this paper is to promote economic growth and to analyze the correlation between financial development and economic growth from multi-aspect within endogenous growth theory's frame, and give a further verification in accordance with this point.As all the developed countries have unexceptionally developed financial markets, and the more developed the economy is, the more great is the financial market's depth and breadth. Recently the role of financial market in economic growth process is especially...