An Empirical Research Of The Contribution Of The Development Of China's Finance Sector To The Growth Of China's Economy

As we know that there are a lot of economical paper about the topics such like economy growth and finance development and there are some well-established theories. From the time of Adam Smith which was dated 400 years ago on, a series of well-known economist such as Harold, Domor, Solow, Swan and Romer helped to established the Economy Growth Theory. On the other side, Goldsmith, Mackinon and Shaw et al leaded into a brand-new research field: Finance development and the economy's development. They use a empirical method while they couldn't offer to model those two things.In this working paper, 1 would like to discuss the relations between the development of China's finance sector and the growth of China's economy. After discussing and reviewing the related theories briefly, I will give a model to prove that there are really relations between those two issue. And then 1 will give a empirical analysis to get some conclusions on the base of the data.. The mainly conclusion are: Finance Development do contribute to China's economy's growth and in which the commercial bank play the major role while the capital market in the representative of the stock exchange don't play any role to China's economy, and the authority's monetary operations will help the economy's growth.