The Threshold Effect On TFP Growth Of Financing Development: The Theoretical And Empirical

Under the background of speeding up the economic growth transformation and realizing the economic restructure, deepening the reformation financial system and pushing financing system to support the real economy becomes a significant topic at present. Currently, China’s economic growth is in the significant strategy stage of transformation, and TFP growth will becomes the main power to realize the economic continuously growing in the future, It has important theoretical value and practice meaning in researching the threshold effect on TFP growth of financing development.Based on the two phenomenon the difference of financial development’s productivity growth effection between developed countries and developing countries, and the different conclusions about financing development to TFP with Chinese experienced from domestic researchers, This paper argues that there is the threshold effect on TFP growth of financing development, And try to verifing its authenticity from theoretical and empirical analysis. On one hand, this paper has systematically sorted financing system’s growth effect on TFP growth by endogenous growth theory, Then, based on economic development stages theory, argues that there is the threshold effect on TFP growth of financing development when the economic and the financing development on the different developing stages. And describing the relationship with financial development to TFP growth as nonlinear curve like "N". On the other hand, the empirical analysis using the panel threshold model with the data of 1992 to 2011 in China, has fully confirmed the nonlinear relationship between financial development and TFP growth, and has fully confirmed the threshold effect on TFP growth of financing development. However, the Financial development’s TFP growth effection is still in the middle(block) stage of the "N" curve; when the level of economic development as the threshold variable, financial development on TFP growth was totally opposed to the theory of anticipated. By deepening financial development to solving the problem of that the effect mechanism from financial development to TFP is not free, and to improving the outer environment of financial development to productivity growth effecting, becomes the main way of the suggestion based on the theory and empirical research. As a result, this article has put forward suggestions from deepening reform of the financial system, speeding up the transformation of economic growth and increasing investment in human capital.