Research On The Correction Between Financial Innovation And Economic Growth

After 1960's, more and more financial innovation occurred in the world, it not only broke the financial industry traditional management situation, but also developed vast space for the financial industry. The financial innovation is the inside motive of the financial development, it re-combines financial main factors and has strong function and permeation and motivation, at the same time, it impacts to feature and future development of financial system. In addition, financial innovation is the important factor which pushes an economic development, because it could increase the flux change the flow way of funds.With Statistics, Calculating Economics, Finance Study, Innovation Theory, System Theory etc, this issue carries the relation research of the finance creative and economic growth on the master line. Based on the collections and study a great deal of domestic and international information, combine system analysis and quantitative analysis method, systematically studied the financial innovation's push function to financial development, the financial deepening, and economic growth of our country. At the same time, give same advices for financial innovation, in order to strengthen the pushing function. Firstly, giving the definition of financial innovation and introducing the effect of financial innovation, then study the relation theories of financial creative and economic growth. Secondly, with the actual circumstance of our country and the Cooperates entire test and the Grainger causality test, this article analyses the financial innovation's function to financial development, the financial deepening, and economic growth of our country. The result shows that the financial innovation is the Grainger's reason for the financial development, the financial deepening, and economic growth in our country. Finally, combine empirical analysis with our country's financial innovation experience, finds the problems of our country's financial innovation, explains the development trend definitely, and give the advices.The research thought that if we want to promote the function of financial innovation in our country, we should strengthen the creative function of financial organizations, set up a financial market system with sound function and moderate development, construct the financial macroscopic environment. In order to strengthen the financial organizations' creative function, we should decrease the government's intervention, support the cooperation of financing institutions and train capable person. We can build the financial market by promoting the market mechanism of interest rate, the higher efficiency of money market and the rationalization of capital market. We should promote the financial innovation's standardization, support the research and the development of financial technique, strengthen financial legal system construction, so provide a better financial macroscopic environment for financial innovation.