Research On The Institution Quality?Financial Development And TFP Growth

TFP has seriously affected the economy of the country's economic growth prospects,and the impact of the crisis through channels and financial resource allocation efficiency.Financial development,through these channels to TFP growth,allocation of resources can be effectively and the system of quality and technical R&D and innovation can be implemented and has a vital influence spread.Some scholars according to economic law legal system and the financial crisis,and to find the important cause of the financial crisis have law enforcement is not in place is sufficient without the perseverance of investors and the legal system of protection.Their research shows that countries with low level of legal system,the asymmetric information and agency problems in economic markets made investors lose confidence in its economic investment.When the economic outlook is not optimistic about the future,to master more information of insiders will speed up the rights of the investors,deprivation,which makes investors prefer to idle capital,it won't go to investment,which can lead to declines in asset prices,the resources can not be fully effective configuration.Similarly,if the legal system of protection cannot be applied to the research and development innovation,the same impact on people in the pursuit of technological innovation.This makes good for growth of technological innovation activities cannot develop and spread.System quality,therefore,for the country to prevent financial crisis the economy is in a state of sustainable development has the extremely vital significance.Based on the developed countries and transition economies as the object,through the institutional quality and TFP growth,financial development theory analysis and put forward the theoretical hypothesis,and then makes an empirical analysis on the basis of predecessors',and then we found Both in developed countries and transition economies,the government management system and intellectual property rights system on the TFP growth rate significantly positive role in promoting.This suggests that a good quality will help to promote the development of the financial system's effect on growth of TFP.By further demonstration,found in the high degree of financial development level of the developed countries,the government management system and the improvement of the intellectual property system to enhance effect between financial development and TFP growth is small;For the low degree of financial development level of transition economy,the government management system and the improvement of the intellectual property system to enhance effect between financial development and TFP growth is bigger.To sum up,the system of quality in the process of financial development to promote TFP growth effect played a crucial role,but enhance the effect of the differences between developed countries and transition economies.