Chinese Financial Marketization Process And Its Contribution To Economic Growth

Financial marketization, also known as financial liberalization, the "financial liberalization" is the 1970s American economist Ronald McKinnon and Edward Shaw proposed theory of financial deepening. Made for the existence of financial liberalization in developing countries "financial repression" phenomenon, financial liberalization can achieve market-oriented operation of the financial sector, the elimination of excessive government regulation, to achieve optimal allocation of resources and improve the overall efficiency of financial markets, thereby promoting economic growth. Both developed and developing countries have experienced or are experiencing a range of financial marketization reform process. In the special period of economic restructuring, what kind of role financial liberalization play in economic development? How to correctly understand the role of the financial marketization and its contribution to economic growth, it is a topic worth exploring.First, use extant index system calculating 1978--2014 years of Chinese financial marketization index, the analysis found that the financial marketization index can better describe process of China’s financial marketization reform, which although in certain periods there is stagnation, but on the whole in a slow upward trend. In all areas of financial reform, only the rate regulation in 2013 achieved the basic marketization, while other areas of the marketization is still faced with the daunting task of financial reform.Secondly, Johansen cointegration test results show that there is a long-run equilibrium relationship among capital investment, labor input, financial marketization and economic growth. capital investment increased by 1% will promote increased 0.54 percent of GDP; every 1% increase in labor input will promote GDP growth of 0.8%; the level of financial marketization every 1% increase in GDP will increase 0.26%; with Wickens and Breusch stage method to estimate the error correction model, when the economic growth, capital investment When departing from the long-run equilibrium labor inputs and financial market in the short term, will be speed error correction term so that short-term fluctuations 0.1943 to long-term equilibrium adjustment; from capital investment impulse response path, the increase in capital investment in the following two years the negative effects of economic growth, weakening economic growth. This may lower the efficiency of capital investment related. From the impulse response of the path of labor, the increase in labor input, a greater impact on economic growth of the labor force, and it can produce a long-term positive effect. From the financial market on economic growth path impulse response, the intensification of financial market reform, financial market-oriented economic growth in the short term will be to produce a positive effect becomes negative after effects. From the economic growth of the financial market impulse response path, the current period of economic growth would accelerate the current period of financial market to generate a positive impact on financial markets and economic growth of a long-term positive effects.Finally, analyze the various input factors in different periods of China’s economic development in the average contribution to the economic growth rate, at present, China’s economic growth is mainly driven by investment based. Capital investment for the average maximum contribution rate of economic growth, the labor force for the economic growth rate showed a downward trend, with an average contribution of a shorter period of time in a long period of financial market of China’s economic growth rate than the average contribution in rate is high.Empirical model has some innovative. Cobb Douglas production function introduced in the financial market indicators to build an empirical model, taking into account the impact of the economic growth factor capital and labor inputs, etc. Secondly, in the choice of model variables used to represent the capital stock of capital investment, labor input into account not only the number of the employed population, while also taking into account the average educational level of the working population, so it can effectively reflect the various indicators.