Theoretical And Empirical Study On Financial Policies Promoting The Growth Of Economy

Financial policies is the important lever for economy growth. Study on financial policies and economy growth in China mainly involves three aspects, which are inherent mechanism, empirical experience and policy recommendations of financial policies promoting economy growth in China.From view point of unity of logic and history, from resources constraint economy to demand constraint economic, from external economy growth from endogenous economy growth, from closed economic system to open economy system, the inherent mechanisms of financial policies promoting economy growth are difference. In resources constraint economy, financial policies put effect on economy growth through regulating supply. And in demand constraint economy, financial policies promote economy growth mainly through regulating demand. In open economy system, financial policies affect economy growth mainly through these two intermediate variables of FDI and foreign trade. In endogenous economy growth model, the impact of financial policies on economic growth is realized through human capital and R & D.The overall inspection of macro-economic factors and financial policy variables and the statistical analysis of financial policies for stable economy growth, for endogenous economy growth and for foreign economy growth in China.The research shows that financial policies promote economy growth significantly in China.It is proved through financial policies multiplier and effect of China from 1985 to 2004 and the effects of financial policies promoting economy growth from 1988 to 2004 in the means of unit-root test, cointegrating test and error correction model to prove this point.According to the analysis and comparison of relevant international experience, it is important to make innovation of financial policies, make financial policy tools microscopic and multi-lever, attch importance on both volume adjustment and structural adjustment for economy growth. At the"eleventh five-years" period, financial policies should be guided by the concept of scientific development, sustainable development and harmonious society. financial policies should choose seven critical focus, which are implementing prudent financial policies to maintain the balance of social supply and social demand, Using financial policies to adjust and optimize tindustrial structures, integrating financial policies to synthesis the independent innovation chain, supporting circular economy to build environment-friendly society, displaying the functions of financial policies to harmonize regional economy development, improving financial policy measures to strengthen regulation of income distribution gap, making innovation of financial policies to enhance the level of trade growth.