The Impact Of Financial Leverage On The Quality Of Economic Growth

In recent years,with the development of economy,China’s financial leverage has been continuously improved,which has become one of the main risks of China’s economy.In 2008,the global financial crisis exploded and severely impacted China’s economic growth,and a series of quantitative easing plans,such as "four trillion ",began to be implemented.A large number of funds were idled and arbitrage in financial institutions,resulting in a rapid surge in the scale of China’s financial leverage.In this case,the real economy can not get enough support and development,and the economic bubble is also deepening,which seriously hinders the sustained economic growth of our country.In order to decrease the financial risk brought by financial leverage,enhance the efficiency and stability of China’s economic growth,and create more prospects for China’s economic growth,in December 2015,supply-side reform began to become the basic direction of China’s economic management,in this general environment,"deleveraging "was first put forward.In October 2017,the report of the 19th National Congress pointed out that China’s economic development should not only focus on the speed of development,but also shift its focus to the quality of economic growth.Therefore,it is very important to study the influence of financial leverage on China’s economic development and to explore the relationship between financial leverage and the quality of economic growth.This article selects the monthly data from January 2010 to December 2018,and constructs a comprehensive index of economic growth quality from three dimensions with principal component analysis:the efficiency of economic growth,the stability of economic growth,and the prospect of economic growth.By studying the influence of financial leverage on the quality of economic growth by constructing an SVAR model,the effects of financial leverage on the efficiency of economic growth,the stability of economic growth,and the prospect of economic growth are further explored.The research results of this paper prove that,in summary,during 2010-2018(post-financial crisis period),the rise of financial leverage has brought a certain negative impact on the quality of economic growth.From an in-depth analysis of the three levels of economic growth quality,it can be concluded that from 2010 to 2018,overall,financial leverage will have a certain negative impact on the efficiency of economic growth,and financial leverage will also negatively affect the economy The stability of growth has a certain negative impact on the economic growth prospects.In response to the above conclusions,this article proposes corresponding policies and recommendations:First,implement structural deleveraging policies by sector and type;second,deepen supply-side structural reforms in the financial field to promote stable economic growth.At the same time,we will promote the rationalization of the capital structure of the real economy in China to improve the efficiency of economic growth;ensure that various economic policies can be combined with each other to improve the stability of economic growth;and complete the relevant financial regulatory system to promote economic growth with more development prospects.