On The Causal Relationship Between China's Stock Market And Economic Growth

Security market is one of the essential elements of the market economy system. Security market plays an increasing important role in China which is shifting from the Collective Planning Economy to the Market Economy System. It is not only the market takes place of the plan to allocate resource but also pushes a new basic constitution which stands for the standard of productive to be formed and to disentangle completely people's idea. The security market in China experienced a developed course through which the security market become more and more large and perfect, now it is growing rapidly. The reason I select "the relation of the security market and economy development?as my researching subject is to judge the level that security market promotes the economy development. Through the research, the result would lay a foundation for the strategic decision of the security market and economy development. There are four chapters in the thesis, the main content as follows: The title of the first chapter is "the Theory of Security Market Promoting Economy Development? In this chapter, on the base of the AK model I deduce three mechanisms that security market promotes the economy development. They are security market accelerates the change from deposit to investment, the security market improves the efficiency of the resource allocation, the security market affects the economy development through changing the deposit ratio. We get the conclusion that the security market is of the important effect to the economy development. The second chapter is about the positivist analysis of the security market in China. At first, I analyze the developing position of the security market, knowing that the rapid development of the security market in our country is an essential factor for the economy development. Then I make a linear regression on the base of the historical data in the way of OLS. The regression result proves that the economy development in our country is of notable promotion to the economy development. The title of the third chapter is "the Economical Function of the Security Market in China" In this chapter, I make the analysis of the security market in our country, they are Collect Funds Function, Reflecting Economy Function and Resource Allocation Function. The analysis proves the conclusion made in chapter two further, and I suggest the security market's function needs to be given into better. The last chapter is about "the Strategic Policy of the Security Market in China" At first, we should define the essential function of the security market which is resource allocation not funds collecting. The role security market plays in the insufficient demand situation should be paid attention. At last, we should further the building of the security market.