Comprehensive Factors To China's Economic Growth Model Analysis

In this paper, we firstly elaborated the basic theories including economic growth theory, monetary theory and GRA theory, followed by the ADF test, Granger Causality test, Impulse Response Functions, Multiple Linear Regression Model and VAR Model. On the basis of the above theories, research methods and analytical tools, we have access to China’s economic growth data, the M2data, the exchange rate of U.S. dollar against the RMB, RMB short-term deposit interest rate, gold transaction price, price indices, the Shenzhen index data, and the Shanghai index data in the China Yearbook Statistics. After data pre-processing work on the above data, we got the basic research data.After obtaining the basic data, we got the research model based on relationship between China’s economic growth and monetary supply through GRA analysis. And based on this research model, we found some potential problems and shortcomings of the model, thus providing specific ideas and suggestions for our econometric analysis.Then we did time series stationarity test on the above data through ADF test, and through Granger causality test determined whether there is statistical significant causal relationship between variables. Based on the above test, we constructed econometric model consistent with the above method and estimated it through multiple linear regression analysis method and vector auto regression analysis, and verified the correctness of the estimated model by means of econometric analysis. Then we did the impulse response analysis and comprehensive analysis to find the potential relationship between the above factors. After further research on the above model, we found the path how factors interact with each other, and gave support to our macro-management, ultimately achieving the purpose of the practical application of theoretical research.