Empirical Analysis On The Contribution Of Stock Market To Economic Growth In China

As known to all, financial activity plays a pivotal role in the modern economy. There are a few divergent opinions about the relationship between stock market and economic growth, although most of current economists agree on the proposition that the financial development promotes economic growth. The thesis adopts empirical analysis method to study the relationship between stock market and economic growth, viewed from consumption, investment, adjustment of industrial structure,recombination of enterprise ect. Based on this, the author brings forward the relevant strategies to enhance and perfect stock market in China recently.Chapter one, the thesis introduces the current research on the relationship between stock market and economic growth inside and outside in the literature summary. Chapter two is the theory analysis that stock market affects economic growth. In this chapter, firstly is the analysis of the function stock market affects economic growth, then function mechanism of stock market acting on economic growth.Chapter three mainly utilizes Regression Analysis, Granger Causality Test in the empirical study on the relationship between stock market and economic growth. In this chapter, firstly checks up the wealth effect. then checks up the effect that stock market acting on the investment. Further is the examination on the relationship between stock market and disposition of resource, through the examination on effect stock market acting on adjustment of industrial structure and effect stock market acting on enterprise's recombination. Finally is the empirical analysis on the relationship between development of stock market and economic growth. The results of empirical analysis show: stock market could stimulates consumption,promotes investment, but the effect that stock market acting on efficiency of resource's disposition is faint. At the same time, the expansion of stock market's scale could promote economic growth, but the increase of liquidity will hinder economic growth. Because the function coefficient of the stock market's scale to the economic growth is higher than the liquidity's, so stock market could promote economic growth. We also find that there exists some problems in stock market, for example, some listed companies "encircle money" hardly; some investors speculate excessively.Finally, the author puts material policy advices to enhance the efficiency of stock market, such as making great efforts to develop and cultivate the stock market; improving the structure of investor and cultivating rational investment; standardizing the operation and improving the quality of listed company; making great efforts to standardize the operation of the intermediary agency.