Stock Market And Economic Growth: An Empirical Analysis And Policy Study

The economic growth promoted the formation and development of the stock market, and in turn the stock market also leaded to the economic growth. The analysis of relationship between the stock market and economic growth demonstrates the function of China's stock market on economic growth, and then makes us objectively understand the position of China's stock market on national economic. This paper analyzed the relationship between the stock market and economic growth in theory and brought forward three intrinsic systems that explain how the stock market promotes the economic growth. And on this basis, the paper explained the special relationship between the stock market and economic growth in China's. Then this paper studied the present situation relationship between China's stock market and economic growth, analyzed the system that explains the relationship between them and the degree to which they act upon each other. Therefore the paper concretely analyzed the reason why there are setbacks in the mutual system, which explains the relationship between them, inquired into the emphasis of marketlization reform in the China's stock market, and brought forward the policy suggestion on how to promote the economic growth more effectively through China's stock market.The paper includes five chapters:The first chapter theoretically analyzes the relationship between the stock market and the economic growth. First the paper theoretically analyzes that the economic growth promotes the formation and development of the stock market, the formation of the stock market relies on its resort to have the cost advantage. Second the paper cites the research that the American scholar Gavine analyzes the relationship between the stock market and the macroscopic economic policy, and clarifies the approach that the stock market promotes the economic to increase. Third the paper deeply analyzes the three mechanisms that the stock market promotes the economic to increase, namely promoting the conversion from saving to investment , increasing the efficiency of the capital collocation and changing the citizen savings rate. And on this basis, the paper further analyzes the intrinsic mechanisms that have special features about China's stock market and economic growth basis on Chinese special state.In the second chapter the paper amply analyzes the present condition between China's stock market and economic growth from the macroscopic angle. On the oneside, the fast economic growth pushed the booming development of China's stock market. Primarily reflecting at: (1) China's continuous and quick economic growth aroused China's stock market's fast development. (2) The deep forward of China's industrialization and the reconstruction of share system produced the mighty market need of China's stock market. (3) China's economic growth provided the amplitude space for China's stock market. (4) China's continuously and quickly economic growth pushed the development of the direct finance and the stock market. On the other hand, China's stock market's booming development pushed economic growth to the magnitude achievement. Primarily reflecting at:(l) China's stock market contributed economic growth, including direct contributions and indirect contributions. (2) China's stock market could break technical restriction and system stipulation with the economic growth. (3) China's stock market pushed the reform about the state-owned enterprise and improved the property condition of the state-owned enterprise.The third chapter is the main body about the empirical analysis .Firstly the paper clarifies the research thinking, choice variables , empirical equation and relationship. Secondly in view of some research methods in china, the paper analyzes the mutual relationship between China's stock market and economic growth. The regression analysis checks the degree to which they relate to each other in three respects: (1) The relationship between China's stock market and economic growth. (2) The relationship between China's stock market and resid...