A Research On The Capital Market And Economic Development Base On The Economic Transition Period

The capital market is a very important sector in the economic development process, but scholars’ studying on the impact of capital market transition to economic development was not thorough enough. Since 1978 our government put forward economic restructuring, it has been nearly 40 years, the capital market is a key driver of the economic transformation to promote the real economy. It optimal allocation by directing capital flows, resource, and promoting economic development entities in accelerator. However, due to the capital market started late, it is still in the development stage, capital markets role in promoting the economic development of worthy of further study.This article will follow the NDRC Macroeconomic Research Institute Task Force on Economic Transition in a stepwise manner, the main research comprehensively accelerate economic transformation period, namely the period 2001 to the present. From the research perspective, the use of the capital market in long-term corporate credit market, stock market, bond market, represented by GDP measure of economic development indicators in the first quarter of 2001 to the second quarter of 2015, quarterly data sample empirical analysis, and concluded: in the short term, capital markets can promote economic development; in the long-term, the impact on the economic development of the capital market is not significant. However, the economic development of the capital markets can have long-term positive effects. Thus, the recommendations of this paper are: first, to accelerate the establishment and improvement of multi-level capital market, so that the capital market has become an important boost to promote economic restructuring force. Second, the coordinated development of all sectors of society in order to promote long-term stable economic development, promote economic restructuring and deepening. Thirdly, the Government should play its oversight and promotion functions, compatible with the market mechanism, jointly coordinated effectively optimize the allocation ofThis paper is divided into five parts, the first part is an introduction, including expansion of significance of the topic, research and innovation and the insufficiency of this paper review the development and current situation of China’s capital market and economic restructuring, and the various stages of economic transformation to define, to clarify the scope of this study period.The second part is the literature review. This chapter first foreign scholars on the outcome of Capital Market and Economic Development will be recalled from the capital market to promote a weak correlation between two aspects of economic development and the development of capital market and economic point of view, set forth the findings of scholars. Secondly, to countries that have experienced the transformation of the United States, Russia, Japan and Korea, for example, combined with the conclusions of previous researchers, the role of capital markets in transition play to elaborate and analyze in these countries experienced economic transformation of China’s economic transformation We can learn from it. Thereafter, this section describes the development process of China’s capital market, our research scholars, in chronological order, in promoting China’s economic transformation in the conscious period(1992- 2000) when the capital market is just forming, the main in the capital market with enterprise reform, when scholars generally believe that should strengthen capital markets, the capital market is the fundamental way of transformation. As the economic restructuring, entered a period of accelerated(since 2001), the capital market has grown, the scholars have different views on the relationship between capital markets and economic development, some scholars believe that the capital markets can promote strong economic development; there scholars through empirical tests show that the pace of development of the capital market slightly slower than economic growth, therefore, economic growth has played a role in stimulating the development of capital markets; at the same time, some scholars analysis concluded that the relationship between the two is not significant. At this point, scholars transition relationship between capital markets and economic development, and no consensus view.The third part is the theoretical analysis, capital market plays in allocating resources to a very important role in the stock market as a core part of the capital market, to play three main functions in economic development, namely: amassed function, capital allocation and an adjustment function, this chapter in the stock market, for example, from the three functions, analyzes the important influence of the stock market in the process of economic restructuring on economic development.The fourth part is empirical. According to this article do theoretical analysis to select economies in transition to full acceleration data sample for the study period, the use of first quarter of 2001 to the second quarter of 2015, quarterly data: GDP, long-term credit balance, the amount of the stock market financing, bond market financing amounted representation targets, through the use of statistical and descriptive vector auto-regression(VAR) model Several assumptions, empirical test, whereby the conclusion is: short-term capital markets to promote economic development, and long-term credit balance on the contribution rate of GDP maximum, but in the long term, the impact on the economic development of the capital market is not significant, but economic development can promote the development of capital markets in the long term.The fifth part is conclusions and policy recommendations. The third part of this article based on the theoretical analysis and the fourth part of the empirical test results, combined with China’s capital market transition period to the actual situation, put forward three policy recommendations to accelerate the establishment and improvement of multi-level capital market, so that the capital market, promote economic restructuring important boost power; the coordinated development of all sectors of society, long-term stability to promote economic restructuring and deepening; the government should play its oversight and promotion functions effectively optimize the allocation of resources.