Research On The Relation Between Fictitious Development And Economic Growth Economy

Since 90's in 20 centuries ,along with the finance and the real estate continue development, the element of all countries'fictitious economy extends gradually, the fictitious economy progress speeds up , the healthy development of fictitious economy is more important to the stable function of the nation economic safety. Both the development of real economy and the promotion of economic mechanism circulation efficiency are closely related with fictitious economy development .the reasonable healthy fictitious economic development will bring about beneficial influence on real economy, and make a "lubricant" function. But the fictitious economy inflation is so excessive that leads the bubble economy and influences the society economy development. How to guard fictitious economy excessive inflation and the bubble economy, financial crisis has become a focus problem on economic field .Based on the above-mentioned problem, the core problem of paper is the relationship between the fiction economy development and the economy growth. Because of the restriction of time and data, the paper mainly discusses a few problems as follows:â‘ What is the fictitious economy and whether fictitious economy moderates with the real economy in China;â‘¡how the fictitious economy development produce influence on the economy growth and how deep the degree of influence.â‘¢What is the moderating strategies of fictitious economy and economic growth in China.During the studying, the paper mainly combines theories analysis with substantial evidence testing, qualitative analysis with quantitative analysis. The main conclusions of paper as follows:â‘ In China, the fictitious economy is put forward from the angle of "fictitious capital" of Marks . it means that under the environment of economy and finance globalization, based on the modern credit system and relied on the financial system, the fictitious capital circulates and make a kind of opposite independent economic activities .But the fictitious economy has the big difference with finance and bubble economy. The paper uses coordination model of ecology to analyze the coordination degree between the fictitious economy and the real economy. The result manifest: from 1991 to 1993 the coordination degree is descent; 1994-1997 the coordination degree presents steady up-trend; 1998-2000 the coordination degree descends continuously; 2001-2003 the descent range is low; in 2004 the coordination degree descend . Finally we use the theories to analyze the variety trend. â‘¡The wealth effect of the stock market and pagano model of the capital market are the function mechanism of the fictitious economy development to economy total amount. The result present: our country stock market exist a weak positive wealth effect; the decisional factors of economic growth are saving rate, saving-investing translation rate and marginal rate of production. Any factors which change three factors all influence economic growth.â‘¢The function mechanism of fictitious economy development to economic structure are financial structure, industrial structure and ownership structure. At present, taking bank as a predominance and taking market as assistant is financial structure in China. With the development of fictitious economy and the perfection of capital market , taking the market as a predominance will be financial structure. The relation between the development of fictitious economy and the ownership structure variation is interactive cause and effect, but one-way cause and effect relation between industrial structure and fictitious economy, the advance of industrial structure need a advanced level of financial structure. From many perspectives to develop can making the step of fictitious economy, and economic structure's moderat . Because if one factor doesn't develop quickly , it will restrict other factors'development.â‘£the coordinated development between fictitious economy and economic growth should begin from three aspects: First, actively promote the fictitious economy and the real economy at a high-level; secondly, improve contribution of the fictitious economy development to the economic total amount and the accelerating role of the fictitious economy to economic structure ; lastly the economic and financial globalization make us correctly to analyze the advantage and disadvantage of capital market and make a right decision.