Chinese Financial Liberalization And Economic Growth Relationship Study

Facing with the tide of financial globalization and following with the step of China's entry into WTO, China's financial opening is continuously deepening. In China, Whether financial opening will stimulate its economic growth, and what is the relationship between financial opening and economic growth, are deserved our concern and research. So, in such background, there are much realistic significance to research the relationship between China's financial opening and economic growth.Theoretical and empirical analyses are used in this essay to study this relationship between China's financial opening and economic growth. Based on the theory of economic growth and financial opening, the thesis makes qualitative analysis by the bidirectional decomposition of financial opening and economic growth, so the relationship research not only contains the relationship between the international capital freely-flow financial service liberalization and economic growth, but also contains the relationship between savings investment and financial opening. Meanwhile, the thesis makes quantitative analysis through the co-integration test and Granger causality test to research the relationship between financial opening and economic growth, including the empirical analysis of the relationship between savings investment and financial opening. At the end, this thesis provides pointed countermeasures for China's financial opening.