The Chinese Stock Market Development And Economic Growth The Empirical Research

The development of the stock market and economic growth relationship has always been a hot topic discusses the economic and financial field. Chinese stock market has made great development in last decade even catch up with the hundreds of years, some countries in this context, this article deeply probes into the development of Chinese stock market and the relationship between the economic growth, In the first place in the introduction part simply summarizes the development of Chinese stock market and economic growth of the selected topic background, research purpose and method, and structure of the article. Secondly, based on the literature review part expounds the foreign and domestic scholars on the stock market development and economic growth relations between the two points of view. Article third part from the relationship between stock market and the real economy, the stock market to promote economic growth theory analysis and the economic growth to promote the formation and development of the stock market from three aspects of the relationship between stock market development and economic growth theory overview. The fourth part is about the relationship between Chinese stock market development and economic growth empirical research. Through the establishment of Vector autoregressive model VAR (Vector Autoregression), the gross domestic product (GDP) growth indicators, the stock market development indicators capitalization rate (CAP) and transaction value (FR) and quarterly turnover (TUR) and their processing after data unit root Test (ADF), Cointegration Test, Cointegration Test and Granger Causality Test, Granger Causality Test), and through the impulse response function (IRF) and Error Correction model (Vecton Error Correction) is analyzed. The next part of this is the stock market development and economic growth policies and Suggestions are put forward. The sixth part is the conclusions of and the problems need further research.We pick up from1998to2012, the stock market development index and economic development index of quarterly data for empirical analysis. This paper, by using unit root test, cointegration test, granger causality test and impulse response analysis to get the following conclusion:the development of the stock market can not promote economic growth, on the contrary. The expansion of the stock market hinder the development of economy, the stock market liquidity and did not significantly increase the relationship of economic-development. At the same time, based on the granger causality test shows that the stock market development and economic development that does not exist a two-way causal relationship, there is no one-way causal relationship.Innovation of this paper lies in:first, the stock market and economic development to the theory of both mutual influence has carried on the induction and summary of literature, analyzes the mechanism between stock market and economic growth. Second, the empirical aspect, the original tentative calculation of capitalization rate index for improvement, using the circulation of the stock market value instead of the total value is used in a lot of literature. This paper adopted the reason is that with the total cost of the circulation of stock market in recent years the reform, the non-tradable shares cannot be counted as part of the capitalization in the market, in the measure of Chinese stock market development, the change of the proportion of tradable shares, can reflect the past few years the stock market reform process and change.