An Empirical Study On FDI, Financial Structure And China 's Economic Growth Based On Dynamic Panel And

Economics is the foundation of the whole world. As the core of economics, finance isalways attracted substantial scholars’ interests. Therefore, in this thesis, it focuses onthe study of how the financial market and foreign investments effect the economicgrowth in China. Firstly, there is a data-based introduction of the developments of thefinancial market and foreign direct investments in China. Descriptive statistics showsthat there is a gap of financial market between China and developed countries. Then,it establishes a novel econometric model for Chinese economic growth which basedon the expansion of Cobb-Douglas function. This model relies on new-classicaleconomic growth theory and endogenous growth theory, and performs in modelingthe provinces’ economic growth panel data from1992to2011. Empirical data studyshows that the financial market growth is significantly positive correlated to theforeign direct investments and loan efficiencies of banks. Lastly, suggestions onimprovements of financial market efficiency, distribution of financial marketresources and utilization of foreign direct investments are given in the end of thisthesis.