Measure Of The Degree Of China’s Economic Marketization And The Research Of Financial Contribution To The Degree

The improvement of C hina’s economy is no doubt benefit from the market-oriented reform, market-oriented reform has promoted the improvement of the efficiency of resource allocation and enhance the efficiency of the national economy. The process of China’s economic marketization continues to accelerate, but there are many problems in the process of marketization. At this stage, C hina’s economy is facing structural transformation and upgrading, combined with China’s current economic situation and the central economic development strategy, focus on how to improve the degree of market economy is particularly important. Among the many factors influencing the market economy, the impact of the financial can not be ignored. Li also pointed out that finance can provide strong support for economic stability and structural adjustment, and it shows the importance of finance in the real economy.Firstly, start with the determination of market economy, although scholars have the meaning given to the marketization is not exactly the same, but the original aim. Simply put, economic marketization is the transformation from planned economy to a market economy, and socio-economic activities subject to marketization. In index construction, this paper draw on relevant research results combined with China’s specific national conditions and the selection criteria of indicators, ultimately determined four indicators---market factors of production, enterprise behavior in the market, the degree of government adaptation to the market and international economy. After standardization of indicators and principal component analysis, finally obtain the total measure of the degree of market economy of o ur country, as a foundation for the theory and empirical research.This paper analyzed the theory of the relationship between finance development and economic marketization before the empirical study, and summarized several roles the financial development played in the economic marketization---capital flow channels, information cost channels, specialization channels, enterprise supervision and manage channels. The academia usually use financial development to measure the level of financial development, This is manifested not only financial growth in the size, but also the performance of the financial structure adjustment and optimization, and only comprehensive test both quantity and quality can give a comprehensive assessment of the situation of a country’ s financial development.Therefore this paper researches the relationship between financial development and economy marketization from these two perspectives. In the empirical research, we use the granger causality test, co-integration test and vector error correction model method and other methods, on one hand examine whether financial development is the granger cause, on the other hand to test the long-term stable relationship between variables. The empirical results show that the scale of C hina’s financial development is still at a low level, it did not play a sufficient role in the process of market-oriented economy. In terms of financial structure, financial ownership structure, market structure, industry structure, asset structure are irrational, financial innovation is insufficient and financial regulatory system is imperfect.Seen, there are many problems of the financial development in the process of economy marketization. At last, this paper proposes several policy recommendations of the financial development empirical results and financial conditions for the development of specific process of C hina’s economic marketization.