Empirical Study Of China's Financial Development And Economic Growth

Economic growth is a permanent topic in macro economics. Financial agency and financial system should suitable for each other in different stage of economic growth. Nowadays, the level of financial market in our country isn't very high, financial section can't give full scope to allocate economic resource and promote business completely. Our country have joined in WTO, we have to solve so many questions between financial section and international financial system. So, in nowadays, an empirical analysis of financial development and economic growth is very important.Firstly, this paper gives a review in this research domain and spells out the frame of this paper. Secondly, we analyse the models of endogenous. Mechanism between economic growth and financial development lie on three aspects: saving, capital marginal productivity and the ratio of investment. In the third place, according to the fact of our country, we studies on the relationship of financial agency stock market monetary market and economic growth in series of econometric analysis. After that, we studies on the regional difference between financial development and economic growth with panel data.The result of empirical analysis indicates that the development of financial agency stock market monetary market promote economic growth in the long term, but in the short term, the development of financial agency stock market isn't the cause of the economic growth. All of these results indicate that financial development in our country still need innovation. According to the result of regional financial development and economic growth, we can see the relationship between financial development and economic growth in east part is the most compact in three parts. The middle part is better than the west part. These results indicate that the difference still exist in these areas, and the level of financial development should improve.Based on all of the empirical analysis results, we put forward some suggestions, such as improving the efficiency and quality in financial agency, the reform in financial agency and improving the scale in stock market, developing the regional capital market and enhancing the financial innovation, making regional financial implement and financial mechanism enrich.