Study On Coordination Mechanism Between Financial Structure And Economic Growth

The theme of this thesis is"finance and economic growth". Aiming at the deficiencies of theoretical studies inclining to one of financial intermediary and financial market, this thesis studies different financial structures-focusing on financial market or bank medium-as well as the coordination mechanism between financial structure and economic growth by combining financial intermediary and financial market. The concrete substance mainly consists of four major parts:Part I: introduction and review of literature, including the 1st and the 2nd chapter. This part mainly elaborates the research background, idea and technique course etc, introduces the present situation of relevant research on the coordination of the financial structure and the economic growth theory separately from the views of the economic growth theory, financial structure theory and so on, and analyses some defects in the current research and its inspiration to this thesis.Part II: financial structure and economic growth-theoretical analysis, including the 3rd, the 4th, the 5th and the 6th chapter. Firstly, this part analyses characteristics of financial transaction, explains that financial transaction is"relationship transaction"and is incomplete; then based on the governance system of financial contract, this part analyses the comparative advantages and limitations of financial intermediary and financial market from cost saving, financial function and so on, their alternative and complementary relationship makes up of balanced financial system structure; and then, using endogenous growth model, this part analyses coordination mechanism between financial structure and economic growth from the perspective of financial function; the developing countries should choice financing mode reasonably based on different stages of economic development; finally, after analyzing the functions and reasons of financial innovation, this part shows that financial innovation is a good way to realize coordinate development between financial structure and economic growth.Part III: financial structure and economic growth-positive analysis, including the 7th, 8th chapter. This part consists of fore sections. First of all, a brief review and evaluation to development history of Chinese financial intermediary and financial market during the period of economic transition from planned economy to market economy; second, effect of financial structure change on economic growth during the period of economic transition; third, relevant analysis among financial intermediary, financial market and economic growth; fourth, cointegrate analysis and Granger causality test among financial intermediary, financial market and economic growth. In the third and fourth sections, this thesis analyses detailedly the relationship among financial intermediary, financial market and economic growth by use of quarterly data from 1993 to 2007, results show that Chinese financial structure change has an effect on economic growth to a certain extent, financial intermediary makes a greater role to economic growth than financial market, China is still a bank-dominated financial structure; results of Granger causality analysis show that there are numbers of single-way and two-way Granger causalities between Chinese economic growth and financial structure, on the whole, economic growth has a stronger impact on financial system.Part IV: Conclusions and prospects, including the 9th chapter. This part summarizes the most substantial study results in this thesis; based on the conclusions, this part discusses coordination approach and policy recommendations between financial structure and economic growth; finally, we put forward the prospect to follow-up study.