An Empirical Study Between Stock Market And Economic Growth In China

After ten year's fast development, China's stock market has made a great progress. Practice shows that the development of stock market has played an important role in enterprises' financing and reforming. 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. Even the impact of a developed and mature stock market to a country's economic growth still remains to be discussed. The analysis of relationship between the stock market and economic growth not only demonstrates the function of China's stock market on economic growth, but also makes us objectively understand the position of China's stock market on economic growth.The paper include 4 chapters:The first chapter reviews the study on stock market and economic growth. The second chapter cites Pagano's theory to clarify the approach that the stock market promotes the economic to increase. Third the paper apply the empirical analysis to the stock market and economic growth in China with the cointegration and Granger method. And on this basis, in the last chapter we give the suggestion on how to perfect our stock market.