Financial Development?Technological Progress And Economic Growth

Chinese economy has taken major steps and its economic strength has risen to a new level in the nearly 40 years of reform and opening up,GDP has increased to 82.7 trillion yuan.In the past five years,the average annual growth rate was as high as 7.1%,accounting for 15%of the world's economy from 11.4%,and contributed more than 30%to the world economic growth.The economic structure has undergone major changes,Among them,the high-tech manufacturing industry has grown at an average annual rate of 11.7%;Progress-driven development has yielded fruitful results;The total social R&D investment has grown at an average annual rate of 11%,and the scale has leapt to the second place in the world.The rapid rise of new kinetic energy is reshaping itself.The pattern of economic growth and profound changes in production and lifestyle have become new symbols of China's progress and development.Therefore,this article combines the features of contemporary economic growth and aims to study the internal relationship between financial development,technological progress and economic growth.Currently,the relationship among financial development,technological progress,and economic growth in the academic community is more concentrated on the relationship between the two,that is,whether the impact of financial development on economic growth is promoted or hindered.Similarly,the relationship and financial development and technological progress,technological progress and economic growth has also received extensive attention.However,the academic community does not have a unified view of the relationship among the three,so after reviewing many literature points,this article innovatively puts the three aspects of financial development,technological progress,and economic growth into the same framework for research,empirical analysis of the relationship between financial development,technological progressThis paper takes the data of 30 provinces and cities in China from 1998 to 2014 as a sample,and uses the systematic GMM(SYS-GMM)estimation method to examine the relationship among financial development,technological progress,and economic growth.The results of the study show that:(1)From the national data estimates,financial development and technological progress have a significant effect on economic growth,and technological progress has a significant negative effect as a channel for financial development and economic growth.From the macro level analysis,this result should be caused by the incoordination of China's financial development level and technological progress,that is,the level of financial development compared with technological progress is too fast or too slow,and that financial development is hindered from certain aspects of technology The development of progress,or technological progress,has constrained financial development.(2)From the empirical results of the sub-regions,the estimated coefficient of technological progress in the eastern and western regions was negative when no interaction was added.Although this was not significant,it also confirmed that the eastern region and the financial sector are more developed in financial development.In western regions where the level of development is relatively backward,the uncoordinated level of financial development and technological progress will make it possible to curb economic growth in the region.After adding interactive items,the estimated coefficient of technological progress in the eastern and western regions is significantly positive.After divesting the effect of financial development on the economic growth through technological advancement channels,technological progress has significantly promoted economic growth.