The Econometric Analysis Of Financing Ways Of Banks And Stock Market To Economic Growth In China

Given the important position of the finance in our economic life and many contradictions in China's financial structure, the paper includes empirical analysis to the function and specific path of the banks and the stock market to economic growth, aiming at proving what role do banks and the stock market play in China's economic growth. and on the basis discussing the option of financial structure in our country: whether the market-based or bank-based? Based on empirical analysis the paper reveals the problems of the financial structure and gives specific reforming measures.On theory, based on the endogenous growth model—AK model, the paper expounds that Finance affects economic growth through three channels: which are the savings rate, savings-investment converting rate and the capital marginal producting rate. The paper also expounds the four different perspectives on the choice of the financial structure: Bank—based Views,Market—based View,Financial Service View and Legal-based Views. further clarifying different mechanisms,the advantages and disadvantages of the banks and the stock market respectively in promoting economic growth . At same time the paper has a deep analysis to China's financial structure.On empirical analysis, the paper has econometric analysis on function of the way of financing of banks and the stock market in economy with many indicatorsor, cointegration theory and vector error correction model. The frist conclusion is that banks and the stock market both show positive function to China's economic growth. The function of the stock market is significant but weaker; The second conclusion economic growth is more dependent on expansion of the financial scale than optimization of the financial structure; The third conclusion is that bank greatly improves the monetary expansion in China and inhibition to the process of stock market is not yet clear . So China has a typical bank-based financial structure. The paper has a deep empirical analysis on specific ways of impact on economic growth of banks and the stock market. Based on AK-model the paper has econometric analysis on how financial factors formed by the banks and the stock market impact three elements of economic growth . The conclusions reveal the problems of financial t structure of China. The paper puts forward specific measures according to the problems and clarifies the point of view of the option of China's financial structure in future.