The Positive Study On The Relationship Between Stock Markets And Economic Growth In The Recent Stage In China

As known to all, financial activity plays a pivotal role in the modern economy. There are a few divergent opinions about the relationship between stock markets and economic growth, although most of current economists agree on the proposition that the financial development promotes economic growth. The thesis adopts positive analysis method to study the relationship between stock markets and economic growth, viewed from consumption, investment and money demand etc. Based on this, the author brings forward the relevant strategies to enhance and perfect stock markets in China recently.Firstly, the thesis introduces the current research on the relationship between stock markets and economic growth inside and outside in the literature summary. Then, founded on the neoclassicism macroeconomics and the efficient markets theory, the second part expatiates the theory model and the transmission mechanism of stock markets acting on macro-economy, and discusses theoretically the validity of stock markets.Secondly, the third part utilizes Regression Analysis, Ganger Causality Test and Co-integration Test etc. in the positive study about the relationship between stock markets and economic growth. It turns out that stock markets affect weakly consumption, investment and money demand, and contributes faintness to GDP growth. To sum up, currently, the relationship between stock markets and economic growth is faint.Finally, the thesis analyses the political and economic roots of the faint correlation between stock markets and economic growth. The author puts forward material policy advices to enhance the efficiency of stock markets, such as emending relevant security statute, perfecting corporate governance, accelerating interest rate marketization and the multi-operation tendency in the financial industry, constructing multi-layer stock market system and so on.