Theoretic Analysis And Empirical Research On The Effects Of The Financial Development On Economic Growth

The relationship between financial development and economic growth iS always a challenging topic of economic researches.Though many domestic and foreign scholars have done theoretic analysis and empirical researches on the topic in depth,they have not reached an agreement due to different view on the nature of financial development,different statistical methods and different indexes they empIoy.Since the reform and open to the outside word,with the establishment of the socialist market economic system,Chinese financial industry has experienced a rapid development with financial structure optimizing, financial intermediary enlarging in scale,financial industry more open and financial innovatior deepening.Meanwhile.there are still such problems as financial inefficiency and financial oppressions.Now,the financial industry in our country is facing both the opportunities and challenges China'entry into WTO brings.Researching of the effect and the working mechanism of financial development on the economic growth is not only the practical need for making scientific and rational development strategy but alSO the key to guarantee the economic sustainable development.This essay analyzes the relationship between the financial development and the economic growth in both theoretic and empirical aspects.On one hand,analyzing theoretically this topic based on the relevant financial theories.This part thinks that the financial development in true sense should be appraised in four aspects:financial structure,financial intermediary,financial innovation and financial opening.This idea corrects the defects of the former researches which study this topic in one of the four aspects.According to the above defining,classifies the domestic and foreign scholars research achievements on the relationship between financial structure,financial intermediary,financial innovation,financial openness and economic growth as well as the working mechani sm.Meanwhile,it expatiates each action mechanism,discusses immanent relation of four aspects,explains the reason of the level of financial development being codetermined.and...