Empirical Study On Financial Efficiency And Economic Growth

Paper will chose financial efficiency and the relationship with economic growth as the research topic, from the perspective of trying to empirical analysis of China's reform and opening up of the financial efficiency of the status , China's financial efficiency and economic development in the evolution of the relationship between the general law ,and that reveal the financial efficiency of our inter-regional differences and with the relationship between economic growth.Includes six chapters: Chapter 1 introduction the background and practical significance of the study, then the methodology and framework of the paper, concluded innovation and lack. Chapter 2 review the economic growth theory and the theory of financial efficiency both domestic and international, then tell the research ideas of the paper. Chapter 3 on the basis of the past academic research, choose a set of practical evaluation index system of financial efficiency, to analysis the national trend and inter-regional comparative of China's financial efficiency. Chapter 4 do empirical research of China's financial efficiency and the relationship between economic growth from savings mobilization capacity, savings into investment efficiency and investments efficiency. Chapter 5 further from the regional dimension of China in recent years and its financial efficiency and economic growth in the relationship between empirical researches, analysis differences among provinces, differences between inter-regional and the whole country. Chapter 6 sum up the conclusions of the above empirical study, and give some suggestions.Empirical studies of the papers mainly use factor analysis, regression analysis, chow breakpoint testing and panel data model. The main conclusion is: from 1991 China's financial efficiency was weakened by the strong, then weak and the strong trend; at present, efficient use of funds is the best, then the savings mobilization capacity and savings into investment efficiency. But China's regional financial efficiency has shown uneven while the macro financial efficiency is improving, for the specific performance: the eastern region in terms of savings mobilization, and in the capital utilization efficiency of both the status of the absolute superiority, followed by the central region, the west region has the absolute disadvantage. There is no obvious differences among different provinces about savings into investment efficiency. Overall ,the financial efficiency of the eastern provinces is superior to the central and western provinces. From the regression analysis and the chow breakpoint test of the relationship between financial efficiency and economic growth, by the breakpoint 1994 we have two stages: the impact of savings mobilization capacity on economic growth from weak and strong, the impact of savings into investment efficiency on economic growth from strong by the strong weaking, but the efficient use of funds always play a decision roles in the process of China's economic growth. At the last, panel data analysis showed that the efficient use of funds play a decision rose in regional economic growth, however, the ability to mobilize savings and savings-investment in the conversion rate of economic growth but the impact in various areas between the larger different.There are two major innovation: analysis and evaluation the financial efficiency not only from the trend of overall development, but also from the regional prospective, and associate financial efficiency with economic growth; use chow breakpoint test to identify point in the development of China's financial inflection, and as the critical point, study the relationship between financial efficiency and economic growth phased.