Study On The Relationship Between Financial Structure And Economic Growth

In the 1970 s, American economist Goldsmith who is called “the father of the theory of financial structure” put forward the study about the relationship between financial development, financial structure and economic growth, which create a pioneer on the studies of relationship between financing structure and economic growth. Subsequently,researches focused on the relationship between economic growth and financing structure began to rise in Western developed countries.In developed countries,there are two kinds of financing structure,one is Bank-lead indirect financing way and the other is market-lead way.With the development of economic and society,these ways innovate a lot,which has a influence on economy.At the beginning of our country’s founding,we took a Fiscal-lead financing way.At present, our country’s main financing method is Bank-lead way. With the opening of China’s financial markets and the deepen of financial reform, China’s direct financing rises its proportion in social financing, and also increase the effect between itself and economic growth. For the study on relationship between economic growth and financial structure in China, the article is written after the thoughts of rising questions, analyzing questions, solving questions. The first chapter analyses the background of problem, the significance of the research, the methods of the study and innovations of this article.Chapter two provides a theoretical basis and support for problem’s analysis by seeking theory basis between economic growth and financing structure. The third chapter analyses the origin and evolution of financial structure in China and study the current situation of it,which creates positioning to the analyses in fourth chapter. The fourth chapter, according to the data, creates model to empirical analyzing the relationship between financial structure and economic growth in China, which makes the conclusions more compelling. In the fifth chapter, according to model’s results, article points out the problems in China’s current financing structure, and provides recommendations to promote the upgrading, adjusting and optimizing of China’s finance structure.