The Relationship Between The Stock Market Bubble And The Economic Growth

The stock market affects the economic development directly, the stock market bubble has often appeared in the stock market, so it also affect economic greatly, therefore investors, academia and government are focus on the stock market bubble. Is the stock market bubble benefit of economic growth? There are two different views, the one is support, the other is object. And the author thinks that the stock market bubble is a double-edged sword to economic growth, proper stock market bubble is helpful to economic growth; but it will stifle economic growth after expansion. Therefore it must find a proper area, if the stock market bubble is in this area, it can promote economic growth, otherwise it will stifle economic growth.The first chapter enunciates the research background, the research situation and research deficiency. The second chapter introduces the relevant theories of the stock market bubble and economic growth. The third chapter first calculated the stock market bubble degrees of Chinese A share market from the first quarter of 1993 to the fourth quarter of 2009, and Chinese A share market stock market bubble is divided into stable bubble, expanding bubble burst bubble by interval estimation method. The fourth chapter is positive test, it analyzed the relationship between stable bubble or unstable bubble and economic growth, the results show that the stable bubble is promoting economic growth, unstable bubble is unfavorable to economic growth, so it must control the stock market bubble in stable bubble range. The fifth chapter puts forward relevant policy and suggestions based on the conclusion and Chinese special conditions. The final chapter is the conclusion and prospect of this paper.