An Empirical Study Of The Stock Market On The Role Of Economic Growth

For china, stock market is basically into the circulation times, in2012. which imply the reform of the stock market is successful.China’s capital market also began to establish a multilayer financial system:Bond market, stock market, futures market."Profit" and "mobility" is two wheels to drive the stock market,in the stock market. And in the real economy,"profit" and "credit" is also of great concern to entrepreneurs, Home and abroad, many economists have made a study of the relationship between the stock market and economic growth.A more consistent view is that the stock market to raise capital, transformation mechanisms, optimize resource allocation and dispersion of risk functions.This paper is a continuation of the other scholars about the stock market and economic growth. On the theoretical basis, the establishment of stock market is in order to promote the economy better and faster development, but in practice,the stock market sometimes obstruct economic.So many people do not understand the role of the stock market. Therefore, in-depth study on this issue is need.The whole paper is divided into five chapters.The second chapter is mean to review the domestic and foreign scholars on the relationship between stock market and economic growth.The third chapter is mean to from a theoretical analysis of the role of stock markets in economic growth.Theory is about five actions:liquidity,risk management, innovation, information, the incentive problems. China’s economic is complexity,so the China’s stock market to establish a special contribution to the transformation of China’s economic system.Of course there are negative effect of the stock market:bubble. In the last part of the theoretical analysis are discussed in detailIn the fourth part of this paper is empirical research.The empirical research is divided into three part.The first is about the stock market and the savings.The second is about the stock market and the new investment.The third is about the stock market and the economic growthAfter a series of theoretical analysis and empirical test, in the fifth part of this paper is obtain the following conclusions:(1)In general, China’s stock market played a catalytic role in the economy.(2)The liquidity of stock market promote the investor investing to the high technology, investment risks, long recovery cycle project.To improve and perfect the system, the reform must be penetrate deeply.