The Empirical Analysis Between Our Country's Stock Market And Economic Growth

Although after more then ten years' development, Chinese stock market has established stabilizing mechanism, many problems still exist. Practice shows that the development of stock market has played an important role in enterprises' financing and reforming, and decreasing banks' risks. However, as our stock market still in initial stage, shortages still remain in stock issuing, capital structure and the practice system of the stock market etc. Even the impact to a country's economic growth causes by a developed and perfect stock market remains to be discussed. Therefore, analyzing the relationship between stock market and economic growth, evaluating stock market's effects to our country's economic growth, so as to revealing the prospect of stock market and the potential of economic growth. It's not only premise to realize the status of stock market in our economy and to develop and adjust this market, but also has significance in the development of our stock market and even the whole economy.This dissertation firstly reviews researches on the relationshipsbetween stock market and economic growth. Economist who support the viewpoint that stock market is related to economic growth and can promote the latter, study stock market's role in capital forming from its financing ability, liquidity and scale, etc. They believe that stock market can accelerate capital forming in favor of economic growth. While some other economists state that there's no relationship between stock market and economic growth. They evaluate stock market's role from its scale and financed amount. In section three, we expatiate economic growth theories, includingclassical economic growth theories, neoclassical economic growth theories and new economic growth theories. Based on these above, in section four, we use statistics software Eviews to do cointegration between stock market and economic growth, and conclude that they are not related. In section five, we test their relationship from investing demand system and consuming demand system. We find liquidity indicators and scale indicators of stock market are not important.Why the stock market of our country has not connected with economic growth lies in its many problems and they result from the system flaws of the stock market. So the sixth part of this thesis namely analyzes the system flaws of the stock market of our country, including flaws of the entry system, the withdrawing system, interact system and accountant rules, by the game theory and the "thief theory". At last, we give the suggestions: transform the system from affirmation to registeration and ban the disqualified companies; perfect the withdrawing system; perfect the body of the stock market; build up the shareholder conglomerate lawsuit substituting system; develop and perfect the accounting rules and perfect the information leakage system.Jiang Huihui (Finance) Directed by: Wu Haihua...