Research On Relevance Effect Between Financial Vulnerability And Economic Growth Of The BRICS

Chapter0,"Introduction". In the past decade of the21^st country, the BRICS hasbeen famous for their rapid rate of economic growth and huge market potential, andtherefore has become the important engine of world economic growth and the mainforce of promoting a multipolar world. In recent years, the BRICS has paid more andmore attention on expanding and deepening economic and financial cooperation, andbuilt multi-level communication and cooperation mechanism. Especially since thecurrent international financial crisis, a series of reforms on the financial industry havehelped the recovery of economic growth of BRICS, and at the same time, weakeningfinancial vulnerability. This paper researches on the relationship between financialvulnerability and economic growth. The purpose is to provide useful reference forreducing the possibility of financial crisis, promoting financial reform anddevelopment and enforcing economic growth. This paper focuses on the relationshipbetween the both, and discusses the following issues:1) the vulnerability level of theBRICS;2) time-space effect of financial vulnerability on economic growth of theBRICS;3) relevance effect of financial vulnerability and economic growth among theBRICS;4) relevance effect of financial vulnerability and economic growth of China.Main contents and contributions are listed as follows:"Evaluation index system of financial vulnerability ". This chapter refers tomulti-factor evaluation methods, and makes analysis of factor correlation using theinterpretative structural model, and then build the evaluation index system. Becauseof limitations on quantitative application, a related mesurement index system istherefore constructed."Measurement model of financial vulnerability". This chapter proposes anddesigns a comprehensive measurement model for financial vulnerability based oncomparative analysis of seveal quantitative methods. The decisive theoretical modelcombining sujective and objective methods is then to be used in measurement on financial vulnerability of BRICS."Empirical analysis on time-space effect of financial vulnerability on economicgrowth of BRICS". This chapter builds the panel model among BRICS, selects keyindicators of financial vulnerability to analyse the differentialized impact of financialvulnerability on economic growth."Relevance effect of financial vulnerability and economic growth among theBRICS". A link model is then built to research on the transmission impact. First, themodel researches on the impact by using8sub-modules and compares impact inrespective countries. Then, the model analysed the main relation in the sub-linkmodules among the BRICS. Finally, based on two carrying modules, using main linkvariable （interest, exchange rate and inflation rate, etc.）, the paper summarizes threemain transmission paths."Empirical analysis on relevance effect of financial vulnerability and economicgrowth of China". Based on the former research, this chapter buildssimultaneous-equations econometric model for China to conduct comprehensiveanalysis of China’s financial vulnerability and economic growth. The chapter makessure of relation between financial vulnerability and the major three expenditure needs’pull action, and interaction among economic growth and main financial vulnerabilityfactors.