Study On The Relationship Between Personal Finance And Economic Development Of China

Analyzing from the perspective of economic development, the total increase of economy is inevitable. As the further advancing of marketization of the China's economy, on one hand, the personal income of Chinese residents increases, in addition to ensure the basic life, many people have certain individual assets. On the other hand, the national unified welfare under the planned economic was gradually replaced by market operation. Therefore, for certain economic targets, individuals dispose personal assets in the form of investment was not the patent of a few "capitalists". Through financial means to realize value preserving and appreciation of individual wealth become a public economic behavior gradually. This has put forward higher requirement for all financial product, financial instrument and financial system. For this reason, the theoretical research to relevant respects is very essential.The development of personal finance goes on with the development of economy. Economic development has promoted the development of financial market, and then has promoted the development of personal finance. The personal finance has prominent facilitation to economic development conversely. The financial crisis triggered by the U.S. subprime mortgage crisis brings challenge to Chinese economy in transformation. Emphasis on the promotion of personal financial effect on the economy through the cooperation of each sides of government, supervision department, enterprise, consumer, improving the personal financial service quality, offering the best personal financial product to consumer with the specialized level, specialized service, to excavate the enormous potentiality of personal finance, promote the constant development of the personal finance. It has very important significance to the stability development of China's economic. The development of personal finance will bring the people's property income increase. It is the good execution of "create conditions to let more people own property income" in the 17th party congress report. Income increase, will bring personal consumption increases, promote China's consumer market, and then pull the sluggish consumption.In the literature of western economics, there are many mature researches of personal savings behavior, personal assets selection and combination of theoretical research. The study of personal finance of domestic is only focused on single individual financing business drawing lessons from foreign research approaches. But few people research the relationship between personal finance and economic development, this paper will carries on research from the angle of the relationship between personal finance and economic development.This paper is divided into six parts. The first part is the introduction, main explains research background, purpose and meaning, basic structure, the shortcomings of the content. The second part is the introduction for the theory of personal financial and economic development at home and abroad. The third part is the basic concept of personal finance and related concepts and discrimination of it. Based on the introduction and analysis of finance connotation, and finally put forward the concept of personal finance clearly, then analyzed the status and role of personal finance. The fourth part researches the development of personal finance going on with the development of Chinese economy. Personal finance is also in rapid development with China's market-oriented reform, along with the development of China's economy. Economic development promotes the development of personal finance; this paper also believed that healthy development of personal finance also plays an active role in promoting development of Chinese economy. The fifth part adopts empirical analysis to study the relationship between personal finance and Chinese economy from the aspects of qualitative and quantitative analysis. By setting variables of personal finance and economic development, the sample period being set in 1987-2007, it has using granger causality test and least-square regression. Through the statistics test of the regression results, and summing the results of Granger causality test, can draw a conclusion that personal finance and economic development promote each other. Through the analysis of the fourth part and fifth part, draw the conclusion that the mutual promotion relationship exists between personal finance and Chinese economy development. The sixth part is the conclusion and suggestion part. Based on the analysis results, propose four suggestions to promote the development of personal finance services in order to promote the development of domestic personal finance. This period of empirical analysis selects 1987-2007, because until the 1987 just had a securities market, insurance, bonds and stock has a complete set of statistics.In order not to affect the results of analysis, take the year 1987.The weak point herein is the index weighing the personal finance --the choosing of the financial assets of residents. The financial assets of residents do not have unified statistics requirements at home at present. In this paper the author selected the statistical projects that most academic papers using, namely cash, savings, bond, stock, insurance reserve. These items form the residents'financial asset. And because of the lack of statistical data, cannot calculate residents'debt, so here the residents financial asset statistics is net residents financial assets. But on the whole, there is no essential influence in the direction of study on this text.The innovation of the text is having studied the personal finance development in the process of economic development, and also verified the development of personal finance and Chinese economy can promote each other through an empirical analysis. It is a new angle. Previous research on personal finance, mostly concentrated in the specific personal financial business and personal financial management, asset management, etc., but to the correlation of between personal finance and economic development the study did not. The study of this paper has great meaning.