The Impact Of Financial Development On Economic Growth In Emerging Economies

The impact of financial development on economic growth is an important academic issues of the financial sector. Since the collapse of the Bretton Woods system, the international economic environment of emerging economies has changed greatly, the amplitude and frequency of changes in currency exchange rates have increased, and transnational capital flows more and more liberalization, financial liberalization atmosphere increasingly strong. Affected by this, part of the emerging economies of deregulated financial repression policy, financial moderation is becoming increasingly prominent, and even more serious financial crisis in some emerging economies occured. In order to solve the problem of financial moderation in the process of economic development in emerging economies, it is necessary to study the impact of financial development on economic growth in emerging economies. In order to discuss the financial development of the emerging economy, this paper is divided into seven chapters.The first chapter is an introduction. This paper mainly describes the research background and significance, and on the basis of the relevant literature review, and then further discusses the logical structure of this paper and the main research methods, finally, points out the innovation and deficiency of this paper.The second chapter is the theoretical research foundation. The main analysis of the financial policy and endogenous economic growth, savings-investment conversion rate, financial development and corporate finance constraints of the three related theories.The third chapter is the process of financial development and economic growth in emerging economies. The main return to the state of financial development and economic development of emerging economies, and a simple analysis of the causal relationship between the two, to lay the foundation for this analysis.The fourth chapter is the Enlightenment of financial development and economic growth in developed countries after the World War II. The relationship between financial development and economic growth in the United States, Japan and the United Kingdom are analyzed, and the enlightenment to the emerging economies is drawn from the relevant conclusions.The fifth chapter is the empirical study of the impact of financial development on economic growth in emerging economies. This chapter will be based on "doing" endogenous economic growth model, constructing a theoretical framework, and then mathematical modeling, and the use of econometric methods to relevant data into the empirical analysis of emerging countries.The sixth chapter is the effective mechanism of financial development to economic growth in emerging countries. This chapter will according to the theoretical model of the previous chapter of analysis of the transmission channel of financial development and economic growth in emerging economies, and pointed out the existence of financial problems in the development of emerging economies, in addition, will the results of the analysis put forward how to build efficient transmission mechanism.The seventh chapter is the main conclusions of this paper and the inspiration to china. In the conclusion, the influence of financial development on economic growth in emerging economies is mainly summarized. And on the basis of this study, the inspiration of the related conclusions to China is discussed.Based on the above considerations, this paper makes a review of the history of financial development and economic growth in emerging economies after reviewing the relative theories of financial development. At the same time, it also reviews the process of financial development and economic growth in Japan as a new economic body. On this basis, this paper constructs a "Learn-By-Doing" economic growth model based on the endogenous, and to include the world economy ranked the top 40 major emerging economies, including Brazil, India, China's mainland, Russia, South Korea, Mexico, Indonesia, Turkey, Iran, Poland, Argentina, Taiwan of China, Thailand,South Africa, Columbia, Venezuela, Malaysia, Chile, Singapore and Hongkong of China, a total of 20 emerging economies' data for empirical analysis. The conclusion of the empirical analysis shows that the mixed regression model of panel data, most of the calculation results show that the financial development has an inhibitory effect on the economic growth in emerging economies, Asia's "Four Little Dragons" in a higher degree of economies will come to the opposite conclusion; in the fixed and random panel data model, financial the development index is not significant. In the individual country (region) analysis, Thailand and South Africa's impact of financial development on economic growth shows a positive effect, and Hongkong of China, Indonesia, Columbia, Chinese mainland, Mexico, Chile, Poland and South Africa's impact of financial development on economic growth shows a negative impact, other emerging economies and financial development indicators are not significant. By the conclusion of empirical analysis, the emerging economies' impacts of financial development are some obstacles on economic growth. Funds generated from financial liberalization are not invested in the real economy, financial development is not directly caused the overall economic growth in emerging economies. According to this, emerging economies must overcome financial repression, heir government's excessive intervention, imperfect financial market order, low efficiency of financial institutions, low financial personnel quality, so as to establish effective financial system, deepen financial development to promote economic growth. Finally, based on the actual impact of financial development on economic growth of the emerging economies, this paper puts forward some countermeasures for the similar problems in China.