The Financial Depth,Financial Inclusion And Economic Growth In The Belt And Road Countries

Economic growth has always been the issues of foreign and domestic researchers since it is one of the four macroeconomics achievements.There are numbers of theories and methods about economic growth,and the relationship between financial development and economic growth is one of them.Foreign researchers made research in advance,and domestic researchers made expansion with their basis.In total,researchers made researches about global countries and areas by different theories,models and methods and finally ended up with different results.The relationship between financial development and economic growth can be positive,negative and even an ambiguous changeable relation.This paper aims to research the relationship between financial development and economic growth in a creative way by separating the concept of financial development to two parts:one is the financial depth,which explains the development degree of financial market,the other is the financial inclusion,which explains the extend of financial services.This paper researches the relations about financial depth,financial inclusion and economic growth in both global environment and the Belt and Road countries,and underlines the importance of the Belt and Road countries,in order to analyze the characteristics and influence of finance-growth relation and make meaningful suggestions and policies for the economic cooperation for the Belt and Road countries.This paper devotes in mainly three parts.Firstly,this paper calculates the agent variables of financial depth in 86 countries,including 36 Belt and Road countries.Secondly,this paper uses factor analysis to form an agent variables of financial inclusion in 56 countries,including 23 Belt and Road countries.Finally,this paper uses both static panel fixed effects model and dynamic panel differenced-GMM model to estimate the effects on economic growth of both financial depth and financial inclusion.This paper reaches the conclusions that financial depth causes positive influence on economic growth,while the influence on economic growth of financial inclusion is negative,especially in the Belt and Road countries.