The Comparative Study On Effect Of Commercial Finance And Development Finance To Economic Growth

In the modern market economy,the financial system plays an important role,and well-functioning financial system can maintain and promote long-term stability of a country's economy.Thus,financial development on economic growth has been the focus and highlight of theorists and practitioners. So,there is a significant influence to study how two different types of finance:commercial finance and development finance affect economic growth and what the intensity and differences are.Based on the study of the general financial impact on economic growth path,this article designed the comprehensive index of commercial finance and development finance respectively,and the indicators of intermediate conductivity impact on economic growth. Based on commercial finance and development finance-related data,this article tested the significant of the intermediate conductive indicators and the coefficient of measurement by using of simultaneous equations,and gained the conduction path and the impact strength of the conduction path of commercial finance and development finance impact on economic growth. Finally,this article carried out a comparative analysis on economic growth and the intensity of the conduction path due to the influence of commercial finance and development finance,and gave some recommendations for the reform and development of development finance.Studies have shown that commercial finance , primarily through capital accumulation,technological progress,domestic trade,international trade affects economic growth. Given the different effects of intermediate variable short-term and long-term conduction conduction effects are different, the specific path of commercial finance impact on economic growth is divided into short-term impact and long-term impact : in short-term,commercial finance affects economic growth,mainly through the accumulation of physical capital,human capital accumulation, the domestic trade; and in long-term,it affect economic growth,mainly through accumulation of physical capital,human capital accumulation,technological progress,domestic trade,international trade. While Development finance,mainly through capital accumulation,technological progress,institutional innovation,market channels affects economic growth. development finance affect economic growth,mainly through physical capital accumulation,technological progress,institutional innovation in short-term; and affects economic growth,mainly through physical capital accumulation,human capital accumulation,technological progress,institutional innovation,improve the markets in long-term.Commercial finance and development finance have the significant difference on the path affecting economic growth. Commercial financial impact on economic growth path for both the short and long-term,lies mainly in consumption,in addition to traditional capital accumulation and technological progress,which affect economic growth through consumer credit and other ways While the development finance for both the short and long-term,lies mainly in areas of policy in addition to traditional capital accumulation and technological progress,which break through the bottleneck of various social,economic bottlenecks,institutional bottlenecks to affect economic growth through ongoing system innovation,constantly developing new markets,improving the market.The various paths intensity factors of development finance on economic growth effects are significantly higher in the long run and institutional innovation has a great impact on economic growth in the long-term,and among all of the middle of conductivity used personality indicators development finance affects greatest. And Intensity of the overall impact of development finance is also significantly greater than the impact strength of commercial finance. At the same time,based on an improved model of the traditional aggregate production function estimation on the commercial finance and development finance impact on economic growth measured intensity coefficients. It also shows that development finance on economic growth significantly is greater than the impact strength of commercial finance on economic growth of intensity.