An Empirical Analysis Of The Impact Of Financial Innovation On Economic Growth In China

Financial innovation to promote China's economic growth by accelerating savings to convert investment and improving the efficiency of capital allocation.It is of great practical significance to study the impact of financial innovation on the quality of China's economic growth.In this paper,the time series data and the method of empirical analysis as multidimensional VAR,cointegration analysis are used to analyze the impact of financial innovation on China's per capita GDP growth,economic growth mode and stability quality.The results show that:(1)there is a cointegration relationship between the financial innovation and the per capita GDP growth quality index,the economic growth mode and the stability quality index.It is long-term stable relationships;(2)The vector error correction analysis shows that in the short term,financial innovation has a reverse effect on the growth of per capita GDP and the improvement of the quality of economic growth mode.In the long run,financial innovation has a positive effect on the improvement of China's per capita GDP growth and the quality of economic growth.The effect of financial innovation on the stability of economic growth plays a positive role in the short term,and the effect of long-term correction is not significant.Suggestions:(1)Innovating from financial instruments and services to meet the needs f family financial financing and corporate finance needs;(2)Establish of the corresponding financing institutions to ensure the realization of technological innovation;(3)To ensure that the financial innovation,through innovation to improve the financial risk management capacity to maintain economic stability.