Securities Market Development On The Contribution Of China's Economic Growth

In economics, elasticity refers to the measures of the sensitivity of a variable to the other variables, as long as there is functional relation between the two economic variables, we can use the degree of sensitivity, dependent variable on the independent variable, as elasticity. This article draws concept of elasticity and raises the the concept of securities market development elasticity, national debt market development elasticity, corporate bonds market development elasticity, financial bonds market development elasticity, stock market development elasticity.This thesis is to study the securities market development on the contribution of China's economic growth from the point of elasticity, estimate the elasticity of China's securities market and the elasticity of the sub-markets of the securities market (national debt market, corporate bonds market, financial bonds market and stock market)in the aspects of the definition of elasticity and the regression model and explain the significance of the various relations in the view of elasticity. I find that the elasticity of China's securities market and the elasticity of the sub-markets of the securities market are less than 1, that is, they are lack of elasticity. Corporate bond market makes the largest contribution to economic growth, and the elasticity of financial bond market and securities market is relatively small, whose contribution to economic growth is relatively small, while the national debt market is in center. The long-term relationship of economic growth and the securities market including the sub-markets exist, but the short-term relationship between them is not apparent.The results show that strengthening of the corporate bond market makes the most obvious effects n controlling China's macro-economy, the entire securities market including the national debt market followed, and financial bond market and stock market least important. I believe that in order to promote China's economy to develop sustainedly, rapidly and healthily, the top priority is to develop China's corporate bond market vigorously, then the national debt market and finally the financial bond market and stock market.The entire securities market, whose relatively short history of development, less perfection as well as sub-market development unbalanced, lead to the small elasticity of China's securities market and can not promote the economic growth very obviouly. Therefore, the promotion of China's development and improvement of the securities markets should be accelerated.