The Study On The Relevance Problem Of China’s Financial Industry Structure And The Economic Growth

The financial industry is a significant industry department in the economic society, more importantly, a strategy-based industry department that a country attaches great importance to. As an important symbol measuring the perfectness degree of the development of the financial industry of a country, the financial industry structure has aroused more and more attention from researchers. At present, we are stepping into the new period of the twelfth five-year plan of the economic construction. On condition that the fundamental policy of the structure adjustment and the industry updating is established, it is an urgent actual need to provide theoretical support for planning, designing, arranging and coordinating our domestic financial industry development. Therefore, this paper makes comprehensive use of the theoretical viewpoints and research methods in the modern economic subjects, such as financial development theory, econometrics, industry economics, etc. Besides, it applies co-integration test, VECM and Granger Casualty test to study the relevance problem of our domestic financial industry structure and the economic growth. Moreover, it uses OLS to calculate the marginal contribution ratio of each industry of our domestic financial industry towards the economic growth, and thus further research the coordination-based problem. First of all, on the basis of introducing the topic background and significance, and the domestic and foreign literature of the financial development and financial industry structure, this paper makes brief introduction of the research methods, structure, possible innovation and the shortcoming. Secondly, this paper introduces the basic concept of the structure and analyzes the relation problem of the structure and the economic growth as the theoretical basis of the whole paper. Thirdly, through the relevant data and charts, it states the transitional process of the structure from phase to phase and makes comparison between the domestic and foreign structure. Besides, it tries to analyze the deviation and variation trend of our domestic financial industry structure. Fourthly, it makes empirical study towards the relation between our domestic financial industry structure and the economic growth through co-integration test, Granger Casualty test and OLS estimation. Finally, on the basis of the empirical research, it comes to the research conclusion:there is long-term balanced relationship between the financial industry structure and the economic growth, however, each industry inside the financial industry has made different contribution to the economic growth and also there is a problem of inconsistent development existing in the structure. On this basis, this paper puts forward corresponding policy suggestions of accelerating the harmonious development of the structure and economic growth:we continue to deepen the reformation of the commercial banks, and positively develop the small and medium-sized financial institution on that basis, and construct financial industry structure that the large, small, medium ones are coexisting, besides, we should accelerate the development of the non-bank financial institutions (e.g. insurance, security, etc.) and facilitate the balanced development of the structure.