Analysis On The Relationship Between National Debt And Economic Growth

National bonds is based on the national credit, according to credit borrowed principles, through the issuance of government bonds and to foreign governments and domestic and foreign banks to raise borrowing a form of direct financial resources.This research’s ideas are roughly based on theoretical-Empirical-Policy Recommendations way. The first introduction is based on the concept of national debt, the distinction between the concept of the difference between bonds and government bonds, and describes the relationship between debt and taxes, in order to illustrate the national debt and tax revenue with different means between. Next, the article focuses on the knowledge and the factors of economic growth, China’s economic growth theory analysis, the intention to find an indirect relationship between debt and economic growth from factor analysis of economic growth, but also for the later study of national debt and economic growth lay the foundation for the relationship between the factors. Subsequently, the paper studies the debt on economic growth mechanism, through the analysis of this mechanism; the purpose is to find how debt affects economic growth, but also to lay the theoretical foundation for the empirical study of the text.Theoretical research and empirical research combined. Integrated use of finance, finance, endogenous growth theory, combined with econometric methods, the use of the impulse response function analysis tools, VAR models, the economic effects of debt empirical analysis.Normative research and empirical research:On the basis of empirical research on the relationship between debt and economic growth come, and through normative research, make specific policy recommendations debt policy operational aspects.A comparative study, Compared to Western countries, our national debt practice started late, theoretical development lags behind, and therefore need to learn and absorb the successful experience of developed countries, while drawing on the lessons of its failure, combined with Chinese national conditions and debt policy is to provide policy operations recommendations.The first section is the introduction, describes the background and significance of the research topic, as well as a literature review of the innovation and the shortcomings of the text, article writing methods at home and abroad on the national debt and economic growth.Section Ⅱ describes the history and development of domestic and foreign debt bonds concepts.Section Ⅲ is the core part of this theory, introduced the national debt on economic growth mechanism. Respectively, from the analysis of the factors of economic growth, the impact of fiscal expenditure analysis theory, treasury bonds and government bonds were invested in the economy specifically discusses several aspects (impact of debt on the economy and specific inputs into investment, consumption, labor, technology, and the smoothing effect of the economic structure of the tax to elaborate). This achieves a progressive layers, unraveling effect, ultimately restoring the true mechanism of action between debt and economic growth.Section Ⅳ is empirical part of the paper, through the establishment of vector GDP, investment, consumption, human capital and debt between self-regression models examined the direct effects of debt on economic growth.Finally, section VI of this paper is the policy recommendations by the above analysis, the author concludes that our proposal for debt-related issues.