The Research On The Impact Of Financial Development On Economic Growth Under The Perspective Of Nonlinearity In China

The correlation between financial development and economic growth has long been one of the most important issues in economic theory and empirical research.The national economy of our country has now entered the new normal stage.In the current environment where the global economic situation is not clear and China's economy has entered a new normal,how to deeply analyze and study the relationship between financial development and economic growth has the potential to further consolidate and consolidate China's real economic foundation and achieve stable economic growth in China.Significance.The good economic growth has always been the focus of national concern.In economic development,finance has become an important tool for the government's macroeconomic control of economic development.Finance can also improve the efficiency of optimizing the allocation of social resources.Finance has a significant effect on economic growth.However,from the domestic and foreign literature on the correlation between financial development and economic growth,there are several views.The first is the assertion that financial development has a role in promoting economic growth;the second is that the two promote each other;and the third is the inference that there is no obvious relationship between the two.The impact of financial development and economic growth on each other has always been a focus of academic attention.Economists have explored these two ways in different ways.Most of the research results in foreign countries in the early period believed that financial development and economic growth were linearly related to each other,and the former had a positive view of the latter.With the advancing of financial theory and its increasing research methods,many empirical analyses have brought new results to the correlation between financial development and economic growth.The correlation between financial development and economic growth is not necessarily linear,and the correlation between the two is highly nonlinear.So in recent years,some economists in most countries in the world have changed their direction of inquiry.Instead,they turned to explore the nonlinear relationship between financial development and economic growth.First of all,the author carefully summarized the scientific research results related to financial development and economic growth in foreign countries.Based on the research results of the previous generation of scholars,this article explores the impact of China's financial development on economic growth based on a nonlinear perspective.The current literature on the correlation between financial development and economic growth seldom adopts the dynamic threshold panel model.Therefore,this paper adds the relevant control variables to the dynamic threshold panel model and sets the threshold for this article.For the adoption of the variable threshold,if a country's economy is developing in a healthy way,the country's scientific and technological level will also be correspondingly improved.The productive forces will be developed and the production efficiency will be high,which will in turn have a great effect on the growth of the real economy.The level of science and technology may be a threshold variable.Domestic scholars have not made corresponding explorations.Therefore,based on panel data of Chinese provinces between 1994 and 2014,the article uses the level of science and technology as a threshold variable to explore the relationship between China's financial development and economic growth.Then this paper estimates the threshold effect of China's financial development and economic growth.The empirical evidence shows that China's financial development and economic growth have significant thresholds for science and technology.Then,the threshold of the scientific and technological level is further estimated.Based on the obtained threshold,the data sample is divided into two different intervals,and the parameters of each sub-range sample are estimated.The final estimation results show that when the level of science and technology is higher than the threshold,financial development will have a positive statistical effect on economic growth;when the level of science and technology is lower than the threshold,financial development will have statistical significance on economic growth.The negative effect on.After analyzing the relationship between China's financial development and economic growth,the article gives suggestions for China's balance and sustained economic development.