The Study On The Relationship Between The Institutional Transformation Of Security Market And Economic Growth

The problem of economic growth has been under dicussion since the rise and development of Economics. In the history of economic study, various factors that influence economy has been explored, ranging from capital, natural resources and technologies. As the modern financial industry develops, the relationship between securities market and economic growth has drew increasingly wide attention of economists. Especially for the relatioship between stock market and economic growth, a large number of scholars have made related researches about it and drew numerous prfound conclusions.In China, since 1980s, the securities market has been flurishing and become an indespensable part of China's national economy at present. However, the development of China's securities market went through many difficulties, experiencing several times of ups and downs. During those periods, the relating ministries of Chinese government issued large quantities of regulations concerning securities market, which aim to regulate the market and reassure its development in a healthy and orderly direction. However, some of these regulations do propel the development of securities market while others play an obstrusive effect.Based on such backgrounds, this paper makes a research of the neglected relationship between securities market and economic growth. By using the method of mainstream Economics and Institutional Economics, it analyzes this relationship both in theory and pragmatics. It works out the mechanism of their mutual reaction and the scale of their mutual influence. Finally, it puts forward some suggestions according to the conclusion.