The Research On Credit System And It's Effect On Economic Growth

Economic growth not only depends on the accumulation of production factors and the production technology improvement, but also on enhancing the efficiency of resource allocation. With the gradual rise of commercial economy, trade plays an important role in the human economic and social. Historically, the expansion of the transactions scope and the improvement of transaction efficiency are the important factors of economic prosperity and social development, Also a major power to promote division the work and production technology progress. While an important reason for restricting the expansion of trade is the lack of credit, so along with the development of trade, the credit transaction system which can restrict the trader so as to guarantee smooth transactions is gradual develop and complete. However, in the classical and neoclassical economic growth model, one of the model assumptions is often the full allocation of resources. The transaction was also considered to be instantaneous, with no transaction costs and no credit problems. The rise of new institutional economics can make us borrow the transaction costs as the tools of theory to re-examine the issue of economic growth, as the transaction restriction mechanism of the credit system began to receive theorists'widespread attentions. From the practice point of view, after long-term accumulation, the western countries represented by the United States established a modern credit system whose core is information sharing, which has become an important driving force to promote economic development. In recent years, emerging economies like Latin America, Southeast Asia etc. have also started the construction of credit system. After the 1990s enterprises "debt chains" crisis, China's credit system construction is given a high importance. Starting from the end of last century, starting from the central to local credit system construction boom and has achieved certain results. In this process, the understanding of the credit system and the relationship between the credit system and the economic growth, different people have different kind of view, which has become a major obstacle of the credit system construction in China. What is the significance of credit? The credit system is how to generate and evolve, and what is its internal structure and function? How is the credit system running the internal mechanism of economic growth? For answers to these questions become the starting point of this study. This article tries from the trading restriction mechanism point, using the contract and transaction cost theory, to deeply discuss the credit system's generation, evolution and the relationship between the economic growths, and empirically validate the credit system effects the economic growth in order to provide a theoretical basis for the credit system construction in China.In the second and third chapters, the formation, internal structure, evolution path and development trend of the credit system are analyzed. There are multiple explanations for the concept of credit, credit is not only the expression of moral qualities such as honest and trustworthiness, but also the performance of debtor-creditor relationship in the economic system. From the perspective of transaction constraint mechanism, this paper defines the credit for the integration of contractual relationship in social and economic transactions, that is, credit is the constraint mechanism to prompt transaction smoothly, and is a kind of generalized contractual relationship. Then the article divides credit constraints of trade into moral restraint stage and contract restraint stage, and analyzes the inherent principles and limitations in each phase. Modern credit system was formed for the defects with the moral and contract constraint mechanism, the demand for lower transaction costs, and self-evolution and strengthening of trading restriction mechanism. On this basis, the paper dissects the internal structure of credit system, and thinks the core elements of modern credit system includes credit system environment, credit information sharing mechanism and disciplinary mechanism these three parts. Then from the perspective of trade development and corresponding economic development phase, the paper analyses the evolution of the credit system and internal rules.Further considering the credit system, how the inherent effect on economic growth. As a system changes, the development of credit system is intended to reduce transaction costs. Transaction costs, however, is not a simple concept, with the help of new classical economics theory, this article will separate the transaction costs into exogenous transaction costs and endogenous transaction costs. In explaining the concept of endogenous transaction costs based on the demonstrated adverse selection, moral hazard and the internal mechanism formed by the endogenous transaction costs. Through establishing a game model which include the factors of credit system, this paper analyzes whether the existence of the credit system effects the traders'strategic choices, and considers that the credit system is an important factor for containing traders'opportunism behavior, reducing endogenous transaction costs, and promoting the trade efficiency. For more in-depth discussion of the relationship between the credit system and economic growth, this article assumes that factors of production in a given context, establish an economic growth model including credit system factors on the basis of division of labor and transaction costs, so as to further explain its impact on economic growth.Based on theoretical analysis, this article has done an empirical analysis about the relationship between credit system and economic growth from the overall scale, commercial credit, consumer credit three different levels. First of all, it uses credit scale as an intermediary variable, compare the status of credit system of China with the United States, France, Brazil, then compare the influences that the scale of credit and credit system do to economic growth of the above four countries using co integration, impuls response function method and variance decomposition. Secondly, I have use panel data to overall study the impact of commercial credit to business performance and the change of system to commercial credit. Finally, I have studied the relationship between consumer credit and economic with the Hunan consumer credit data using growth principal component regression. Empirical results show that different forms of credit system have different influence on economic growth, the better the forms the more obvious the effects. Commercial credit has a significant impact on business performance, and the development of credit system also has a significant positive effect on commercial credit. Consumer credit growth also has apparent positive economic effects, but it is weaker because of defects in the credit system.