The Empirical Study Of Relationship Between The Development Of Finance And The Growth Of Economics

History of the modern world economic development is the history of the development of financial Financial institutions, financial markets, financial products and other financial factors in the economy increasingly occupy an important position.Economic and financial, has become an inevitable trend of economic development of countries. Existing extensive literature studies show that financial development is an important factor in economic growth,and it seems to be obviousthat financial development and economic growth is the level of relevance. And the upgrading of the financial structure not only is an important channel for financial development and economic structural upgrading but also economic conditions necessary to achieve optimal growth. This conclusion in the course of the economic life of Western developed countries have been verified. Then as the largest developing country in China, how is the interdependence between financial development and economic growth , and is China's financial development and financial structure also playing a role for the optimization and upgrading of the economic structure ?This paper contains the two parts of both theoretical and empirical research on these issues. In the first chapter we first try to sum up the study of financial development and economic growth abroad and a brief analysis of the status of the development of China's financial system..There is many study about this aspect abroad. Patrick (1966) on the relationship between financial development and economic growth perspective into two categories with supply-and demand; Merton (1995) and Ross (1997), Pagano (1993), King and Levine (1993) and others from different perspective studied on the role of economic growth in the financial channels.Tow views exists: the financial architecture and financial constraints. The research of financial architecture focused on finding a suitable conomic of financial structure for the economic growth, and financial constraints is a theory of financial liberalization. The relationship of financial development and economic growth is a hot spot in empirical analysis; Another hot spot is the financial development and economic growth causation analysis. Domestic concerns on this empirical research focused on China's financial development and the relationship between economic growth, Few on the financial structure and the relationship between empirical studies of economic growth.The second chapter first analyses the role of financial development for economic growth, Mainly to lower risk, lower cost of information to improve...