A Comparative Study Of Financial Development And Economic Growth Among Shanghai Hong Kong And Taiwan

Economic globalization and economic financialization are thetrends of the world economic development, and there has been considerable controversy between the relationship between financial development and economic growth. Since 2015, the Chinesedownward pressure of economy continued to increase, but at the same time the currency credit is in the rapid expansion, so the study for the relationship is of great significance for China’s economic regulation. Shanghai, Hong Kong and Taiwan as the pioneer of the greater China region are also play an important role in the Asia-Pacific region and the world. Therefore, by economic status and global influence of Shanghai, Hong Kong and Taiwan, the studies of the relationship between the respective financial development and economic growth is particularly important.This paper mainly studies three areas of Shanghai, Hong Kong and Taiwan relationships between financial development and economic growth, and the relationships between the differences, and carried on the discussion from two aspects of theory and empirical.Selectthe per capita GDP as indicators of economic growth from 2007.1 to 2015.12; financial institutions sector development, the development of the stock market and bond market development as the financial development indicators. Through stationarity test, cointegration test, VEC model, granger causality test and other methods to analyze the relationships between financial development and economic growth. The empirical results show that the financial development and economic growth are in general causal relations. From the long-term equilibrium and short-term influence: in Shanghai area, financial institutions credit expansion both in the short term or from a long-term point of view, has hindered the economic running; the expansion of the stock market, no matter from the perspective of long-term or short-term regulation all play a promoting effect on economic growth; bond markets, on the other hand, the expansion of the both from the long-term equilibrium and short-term adjustment did not have any promoting effect on economic growth. Hong Kong, although expand the scale of credit and issuing bonds during a certain period can promote economic growth, but in the long regulation, is powerless. Taiwan, although in the short term, the development of the stock market has negative correlation with economic relations, but in the long term, it promoted the economic growth; financial institutions and credit scale and bond market, no matter in the short term or long term, are hampering the economy. Finally, based on the empirical conclusions, the paper will put forward some suggestionsfrom the perfection of financial institutions, the real economy system innovation, and reasonable running of the stock marketto promote financial development and economic growth among Shanghai、Hong Kong and Taiwan.