Research On The Impact Of Volatility Of China's Financial Market On Economic Growth

Volatility is an intrinsic attribute of financial markets,usually expressed as the degree of fluctuation of the price of financial assets.The volatility of financial markets means that there are uncertainties or risks in the market.With the continuous innovation of financial instruments and the increasingly complex changes of financial markets,it is frequently that international financial shocks and domestic financial turmoil.The financial market fluctuations caused by the financial crisis have a relatively complex impact on economic growth.This complexity shows that different economic and financial cycles have different effects.Therefore,this paper divides China's 2007-2017 periods into two parts: the financial crisis and the new economic normal.By establishing a vector auto-regressive model,author empirically analyze the impact of financial fluctuations on economic growth.Specifically,firstly,author establish the EGARCH model to analyze the current situation of China's financial market,and measure the volatility of China's financial market.Then author discuss the relationship between volatility of China's financial market and economic growth by using Copula function and Granger causality test.Finally,empirical analysis of the impact is phased.The results show that the impacts of the volatility of China's financial market on economic growth have lagging,and its effect is different at different stages.When the financial crisis occurs,the volatility of the financial market will stimulate economic growth in the short term.In the new normal period of the economy,any fluctuation in the financial market will have a negative impact on economic growth.Therefore,according to the above conclusions,this article also proposes rationalized recommendations for specific purposes,which is of great significance for stabilizing financial markets and promoting stable economic growth.