The Study On The Relationship Of Financial Interrelations Ratio, Securitization Rate And Total Factor Productivity

Total factor productivity (TFP) as an important source of economic growth or even the only source of long-term economic growth, its growth is inseparable from financial support. Especially with the financial system reform deepening, finance plays an increasing important role in TFP growth. At present, in the dual background of Shandong deepening financial reform and promoting supply-side structural reforms, the systematical system research has an important theoretical and practical significance of the relationship and the mechanism of financial development and TFP.Through statistical analysis, there is a high degree of financial monopoly and financial suppression in the financial industry in Shandong Province, and the development of financial industry is relatively backward, and this status does not match with the economy, and unreasonable financial structure is not conducive to economic restructuring and upgrading. The TFP based on the Solow residual value method to measure shows that the average annual growth rate of TFP in Shandong is 2.73%, and average annual contribution to economic growth is 19.53%, far lower than the contribution of capital investment to economic growth (an average annual rate of 71.89%) in the period of the 1979-2014. Therefore, the TFP to economic growth contribution is smaller. We also find that nearly ten years of the TFP of Shandong shows a downward trend, which is closely related to the extensive economic growth mode and distorted financial structure.In this paper, the internal mechanism of financial development and TFP growth is analyzed by using Pagano model and financial function theory, and at the theoretical level the interaction mechanism between them is straightened out. On this basis, an empirical test is made on the relationship between financial interrelations ratio(FIR) which measures financial development and structural changes, securitization rate(SR) which measures the development degree of the capital market and total factor productivity. The cointegration test shows that there is a long-term equilibrium relationship between Shandong FIR, SR and TFP. Moreover, the Granger causality test shows that FIR and SR had the mutual causal relationship with TFP. In addition, the impulse response function shows that Shandong FIR, SR have sustained significant positive impact on TFP; in short-term, TFP has significant negative shock effect on FIR and SR, but in the long run, the shock is positive. According to the results of variance decomposition analysis, whether in the short or long-term, TFP has the main impact on their own, and FIR, SR have the increasing impact on TFP year by year. The influence of FIR on TFP is greater than the impact on SR and this effect is reflected in a long time. Therefore, in order to promote the Shandong financial development and TFP growth, we must start from their relationship of "demand-following" and "supply-leading".