Theoretical And Empirical Study On The Impacts To Formal Finance Development And Economy Growth Raising By Non-formal Finance

China is a large developing country in the process of economy transition. Since the implementation of reform and open policy, China's formal financial sector and non-formal financial sector have developed rapidly and grown constantly, and china has formed double-track financial running system including on the ground finance sector and underground finance sector. China's economy development especially Non-state economy and the rural economy development have an urgent need to accelerate the reforming pace of the existing financial system, and aright guide and regulate non-formal finance development. On account of above phenomena, the solutions to how we should consider non-formal finance, how to understand and make the best of the relationship between non-formal finance and the formal finance, and how to improve the overall efficiency of the financial system in order to promote economic growth are guiding roles of China's macro-and micro-economic and financial efficiencies.The paper mainly based on the theory of financial development and economic growth, carried out theoretical and empirical analysis on the impacts to formal finance development and economy growth arising by non-formal finance, and reached the following conclusions. The first, the efficiency advantages of non-formal financial of its own can bring financial intermediation effect, risk effect, capital suction effect and the capital allocation effect to the whole capital market. Consequently, it influences the total volume and efficiency of the whole capital market. The second, there indeed are mutually competing and mutually complementary effects between non-formal financial system and the formal financial system. The former can act as a supplementing department of formal financial system, stimulate the informal finance to improve conversion efficiency of savings through competition, and furthermore, increase total amount and efficiency of financial assets. The third, non-formal finance has positive and negative effects on the national economic growth. Quasi-formal finance is able to mobilize private funds to invest private economy and rural economy. Illegal finance will upset the financial and economic order, affect national macro-control and regulation. The last, Government should properly regulate and guide the quasi-formal finance, bright it and encourage competition and cooperation with the formal finance, in order to form China's new financial system pattern and better serve the national economic development.