The Effect Of China Formal Financial Development On The Fishery Economic Growth

China is the world’s biggest fishery country and aquatic products trading power. The fisheryeconomic growth is not only the important content in China’s agriculture modernization, but alsoof vital significance to the implementation of national marine strategy. Since its reform andopening-up, China has achieved rapid development on fishery GDP, fisherman income, and percapita possession of aquatic products as well as aquatic products trade. However the fisheryeconomy is also faced with constraints including resources, environment, and market competitionand increasing trade frictions; A force to push the transformation and upgrading of fisheryeconomy is urgently needed. Finance is the key point in modern economy. Under the backgroundthat modern economy is increasingly characterized by economic financialization, confronted withrealistic request of the transformation and upgrading, analyzing the effect of China’s financialdevelopment on the fishery economic growth thus to seek financial support for the fisheryeconomy is a natural progress that accords with the theoretical logic and objective fact of financialdevelopment.This thesis, based on deep study in the objective reality and relevant researches of China’sformal financial development, systematically reviews and absorbs the financial developmenttheory, precisely defines related concepts, then reveals the realization mechanisms through whichChina’s financial development influences the fishery economic growth; On that basis, the thesisalso makes further study on the present situation of fishery economic growth as well as its financesupply and demand. In addition, it establishes an empirical model based on the classical productionfunction, and empirically analyzes the effect of China’s financial development on the fisheryeconomic growth from the perspective of fishery GDP per capita, fishery labor productivity andfisherman income. The empirical analysis is conducted under GMM estimation with panel datafrom1995-2011of28provinces in mainland China. Finally, the policy suggestions are proposedbased on analyzing the results of the study.The main results of this thesis are as follows:Firstly, the theory of financial development and economic growth can be applied to explainthe effect of China’s financial development on the fishery economic growth. The diverse functionof finance are supposed to influence the fishery economic growth directly through fishery finance, while bring effects indirectly through promoting the overall economic growth which can affect thesupply and demand aspects of fishery economy.Secondly, the fishery economic growth has significant inertia characteristics.Thirdly, the overall financial development significantly promotes fishery GDP per capita,fishery labor productivity and fisherman income—variables measure the fishery economic growth,while the financial structure change goes against the fishery economic growth.Finally, the development of credit market significantly promotes the fishery economic growth,the insurance market plays a relatively smaller role and the development of stock market showssignificantly negative influence on the fishery economic growth.