Relation Research Between Financial Development And Economic Growth

As China's technological progress and economic development level, China's financial status and the increasing degree of financial deepening, financial development has become an important indicator to measure the civilization degree and speed of economic development in a country. Therefore, relationship between financial development and economic growth has been the hot economic issues in the academic research. From the point of research contents, At present the academic circle mainly study relationship and causal relationship, but coordination degree research between financial development and economic growth is very few, under the big society of the harmonious society and scientific outlook on Development, coordination degree research between financial development and economic growth promote the level of financial services to economic. From the point of research methods, research of coordination degree see both mainly use principal component analysis and factor analysis, this paper adopted a complex systems coordinated model. So, complex systems coordinated model is introduced into the relationship study of the financial development and economic growth and have an important theoretical and practical significance.In this paper, first we expound the theoretical basis financial development and economic growth, based on this, the endogenous economic growth model, the measurement model and composite system coordination model is introduced into relationship study of the financial development and economic growth, this paper analysis present development situation of the financial intermediary, securities market and insurance market, study endogenous transmission mechanism process of financial development and economic growth using measuring model, and study coordination degree using composite system coordination model, the results indicates that physical capital, human capital and technology progress is significant way which financial development influences the economic growth, coordination degree of financial development and economic growth has been showed a rising trend. And the main contents of this paper are as follows:Chapter 1 is the introduction section, which expounds research background, research purpose and meaning, the framework of the passage, the innovations of the article and deficiencies, and literature review about domestic and foreign literature.Chapter 2 presents research methods review of the financial development and economic growth. This chapter presents the endogenous economic growth models, unit root test, E-G co integration test and Granger causality test and composite system coordination model.Chapter 3 introduces endogenous transmission mechanism of the financial development and economic growth. First this paper introduces the current situation of financial development from the general state, quantitative and qualitative analysis; then, the use of endogenous growth theory models of the determinants of economic growth, the results show that physical capital, human capital and technological progress is the determining factor; last from financial intermediaries, securities and insurance markets, respectively, for determinants of economic growth, empirical results show that the transmission main from the point of view, the role of banking and financial intermediation is greater than role of financial markets, the role of the insurance market than the stock market's role.Chapter 4 is coordination degree of the financial development and economic growth. First, Construction of financial development and economic growth subsystems, and then coordinate the use of complex systems Model measurements 1992-2009, China's coordination degree of financial development and economic growth, the results show that coordination degree has gradually increased the, but the average coordination degree is still low.Chapter 5 is the conclusion and research prospect of the paper and the prospect of research, and it summaries the whole paper and puts forward some political inspiration. the results indicates that physical capital, human capital and technology progress is significant way which financial development influences the economic growth, the role of banking and financial intermediation is greater than role of financial markets, the role of the insurance market than the stock market's role, coordination degree of financial development and economic growth has been showed a rising trend. Finally this paper puts forward the prospect of research and policy recommendations.The independent work and innovations of this paper are listed as follow. (1) In this paper, building determinants of economic growth through endogenous growth models, which use measurement model to study endogenous conduction process of financial development including financial intermediaries, securities and insurance markets and economic growth. (2) In this paper, building financial development and economic growth indicators, which use composite system coordination Model to study for coordination degree China's financial development and economic growth, according to China's actual situation of financial development and economic growth, bring up policy recommendations how to enhance coordination degree.