Correlation Analysis Of The Credit Scale, And Economic Growth In Beijing

In the system of a market economy, most of the transactions are based on credit. Practice in Western developed countries has proven that, the size of credit scale directly affects the level of economic growth. To further study the relationship between credit and economy through re-recognizing credit has become a hot issue in front of us.The study of this paper is based on the theories about the relations between credit scale and GDP at home and abroad. The characteristics of the credit scale in Beijing are concluded as follows such as low history level and unbalance in the structure. This paper revealed the relationship between the level of credit, the total credit scale and economic growth through an econometric model, and presented the idea that the expansion of credit can effectively promotes the growth of GDP. The government credits, enterprise credits and individual credits effect the economy varies. This paper also compared the differences and pointed out the performances of them respectively. This paper analyzed the economic conditions and credit activity status of Beijing through data comparisons, pointing out lower credit scale in history, credit activity structure imbalances and so on, and accordingly proposed to enhance the credit activities in Beijing, mainly including boosting the function of financial institutes, increasing the credit level of the government, putting forward the individual credits and speeding up the construction of credit management system in Beijing.