An Empirical Research Of The Contribution Of The Development Of China's Finance Sector To The Growth Of China's Economy

The cause, the inherent mechanism and the approach of the economic growth is always being core problem in the theory studies of economic. Compares with the financial development, the relationship between the variable such as accumulation of capital, labor force growth and technology advancement and economic growth early obtained universal attention by the economical world, and there has been the massive research result. In the recent years, the relationships between economic growth and financial development have received academic's attention. More and more economists conduct the research in the theory and the practice as well as the relations between them. The theory research and the causal relation of financial development and economic growth, as well as contribution degree that the finance develops to the economic growth and the inherent effect mechanism between the both, have important practical or immediate significance to the Chinese economy which is in reform of the banking system and the mode of economic growth, for enriching a finance developing theory in the field of applying our country finance, analyzing the questions in our country finance developing process, developing the policy choice.The main purpose of this paper is to make use of the Grange causality tests to study the causal relationship between economic growth and financial development, to judge our country is " demand-following " or " supply-leading ";Theoretically, to analysis the inherent effect mechanism between economic growth and financial development, to choose the appropriate finance index which is affecting economic growth to build the model, to analyze demonstrably the contribution degree that our finance develops to economic growth, thereby, to submit policy suggestion.This paper has been divided into five major parts. The first chapter is a foreword, briefly introduces the basis of selecting the topic, the literature summarize, the research goal, the mentality and the structure arrangement; The second chapter, theoretically, analyzes the interaction mechanism between the finance development and economic growth, emphasizes that the financial which is developed by deposit, the efficiency for investment and capital-output decides economic growth; The third chapter introduces the condition of the financial development and the finance repress under the gradual reformation of financial system; The fourth chapter makes use of the Grange causality tests to analyze the causal relationship between economic growth and financial development, takes the data of 1978-2004 years as foundation and then, analyzes and demonstrates the experience and the data since our country reform and openness, reveals how the finance development influences the economic growth by the research carrying out the analysis measuring on the model building; The fifth chapter, in the foundation of the result, submits corresponding policy suggestion, including enlarging a finance support to science and technology, expanding the financial service to the not-state owned, the marketing of interest rate and perfecting the capital market.