An Empirical Study Of China's Stock Market And Economic Growth

The relationship of the stock market and the economic growth is a new topic in an economic growth fundamental research. After the economists have discussed the relationships of the trade and the economic growth, the finance intermediary and the economic growth in detail, the importance in how to limit the influence of the stock market in the economy has being realized increasingly. Some foreign scholars through demonstration study discovered that some kinds of corresponding relations existent between actual GDP per capital and the stock market developing, and there are some causal relations between the two possibly. As to China in which stock market didn't have not yet fully develops, the argument about whether the development of stock market had accelerated effect on economic growth didn't have stopped from the day China stock market arised. At present national scholars have two viewpoints: one is that there are lenis relations between stock market and economic growth, another is that there are positive relations between stock market and economic growth Because of the differences in some researching mentality and some erroneous zones in measurement analysis method, the credibility of demonstration study conclusions reduced. This paper analyzed the relationship between the stock and economic growth in normative study and demonstration study, the part of demonstration study through setting up VAR(Vector Autoregression) model, On the basis of VAR model, we continue to analyze the relationship between stock market and economic growth with Impulse Response Functions,Granger Causality test methods and finally set up VEC model. This paper analyzed the dynamic relationship between stock market and economic growth in the long run as well as in the short run.The research find that, after ten years' fast development of China stock market, the economic growth accelerated the stock market scale in some degree, but the stock market scale didn't have active effect on Chinese economic, on the contrary it became one of the block factors. The accelerating effect on economic...