The Analysis Of The Effects Of Consumer Credit On China Economic Growth

With the continuous development of economy and the weakening of the global economic crisis, to restore its economy has become a national priority. Every country begins to start looking for an effective way to develop national economy. The national economic troika (investment, consumption and import and export trade), which affects economy, have been seen as an object for development. Import and export trade is mainly related to foreign economy and investment intention, which for the most part is based on the global economy. Investments and consumptions have two parts including domestic and abroad. Although in some countries, the investment is the best way to rapidly increase the gross domestic product (GDP), but from a long-term point of view, investment has certain limitation, so to improve the consumption is the most effective way to improve economic growth. In hence, domestic consumption begins to become one of the preferred indexes to increase its economy. Countries have also started to revise the law policy to protect their own domestic consumption of products, in order to promote the development of economy. The consumer credit loans become a new star receiving worldwide attention.This paper takes the effect of consumer credit loans development on economic growth as the research object. It is mainly through consumption effect, investment effect and international trade effect to explain the consumer credit loans. Then the paper will select data from2003to2013to build models. Then it will discuss that the consumer credits have an impact on the economic growth, and use measuring software for analysis. Finally this paper will make a conclusion.The results showed under consumption effect, the consumer credit has a positive effect on stimulating the gross domestic product, and to a certain extent negative effect on consumption, but in the long term there is an increasing trend; under investment effect, the consumer credit has a positive effect on GDP and investment, besides, the investment also has a positive effect on GDP; under the trade effect, consumer credit has a positive effect on stimulating GDP, but have a certain degree of restraint on import and export.