The Relationship Between China's Financial Structure And Economic Growth

Economic operations and financial activities promote each other.Finance is the blood of economic operations and the hub of resource allocation.Economic operations and financial activities promote each other.Finance is the blood of economic operations and the hub of resource allocation.The theory of modern financial development theory holds that finance is the core of the modern economy.The financial structure of a country has an important influence on the operation of the macro economy.At present,China is undergoing structural reforms on the supply side,and the supply-side structural reforms in the financial industry also need to continue to advance.In addition,there have been more and more discussions about the over-financialization of the economy in the society.Many people think that China has a tendency to over-financialize.Therefore,it is necessary to have a comparatively comprehensive understanding of the status quo and development context of China's financial structure,to clarify the linkage mechanism between financial structure and economic growth,and to study the interaction process and interaction between China's financial structure and economic growth.These are the optimizations of China's financial institutions.Both economic and economic stability have important implications.This article first sorts out the literature on the relationship between financial structure and economic growth,and is different from the single-phase and single-direction combing methods of other documents.This article first summarizes the groundbreaking research on the financial structure and economic growth from the groundbreaking and foundation,from the financial impact on the economy,financial and economic causality research,to the definition of the financial structure,the financial structure related indicators.And then from the horizontal summary of the five core views(bank-oriented theory,market-oriented theory,irrelevant financial structure,etc.).Many literatures only summarize the literature on the direction of the impact of financial structure on economic growth,and ignore the view of the impact of economic growth on financial structure.The five viewpoints of this paper cover two directions and are more comprehensive.Next,it theoretically analyzes the function mechanism between financial structure and economic growth,and analyzes the mechanism of economic growth from three perspectives: financial intermediation,financial market,financial intermediation and financial market complementarity.Afterwards,it describes and analyzes the interaction process between China's financial structure and economic growth.Firstly,in combination with China's actual situation,we describe the development process of financial structure and economic growth after China's reform and opening up,and then make a simple analysis of the mutual influence between China's financial structure and economic growth.Among them,the financial structure is also divided into two aspects: banking financial intermediary and financial market(including stock market,bond market and insurance market).Then,this article selects three financial structure indicators,namely,financial correlation rate index,financial intermediary index,and financial market structure index.Some literature only select one or two of them to represent financial institutions.This article takes into account various indicators.With different emphasis,all three indicators are included in the scope of the study.In addition,in the selection of FIR secondary indicators,most articles use financial institutions' total deposits and loans to replace total financial assets,ignoring the impact of stocks,bonds,insurance and other assets.This article has improved this point.Then,the author uses the vector autoregressive model twice to empirically analyze the relevant data from 1992-2016 in China.The first time used to study the correlation between the financial correlation rate index and economic growth,the second time used to study the interrelationship among financial market-financial intermediation-economic growth,and many of the literature is only for them.The relationship has been studied in twos and two.This article will incorporate the three into a framework for research.Based on this research,combined with the Granger causality test,the relationship between the above two groups was analyzed using the impulse response function and variance decomposition method.The study finds that: First,the impact of the increase in financial correlation rate indicators on economic growth indicators is positive in the short-term,while the impact of economic growth on financial correlation rates is not clear;second,the impact of financial intermediation on economic growth is positive in the earlier period.Although the weakening of the late period is even negative,the impact of the financial structure on economic and economic growth will lag behind,but the impact will be more profound and will gradually increase;economic growth will have a short-term driving role for financial intermediation,but it will not really stimulate the financial structure.Improvements.Finally,based on the above analysis,the problems existing in the interactive relationship between China's financial structure and economic growth are summed up,from the three aspects of financial institution structure,financial market structure and economic over-financialization.Then analyze the reasons for the above problems in detail,and then propose policy recommendations for building a positive interactive relationship between China's financial structure and economic growth.To sum up,this article not only has a certain reference value for promoting China's economic stability and progress,the optimization of the financial structure and the continuous promotion of supply-side reform.Moreover,in the literature review of financial structure and economic growth,the selection of financial structure indicators and data,as well as the construction of the model has a certain degree of innovation.