A Research On The Impact Of Financial Development On Economic Growth In China

Economic growth has always been one of the topics of greatest concern to the economy and society.It relates to whether the country's economic strength is strong,whether country's politics are stable and whether the quality of people's lives is high.Since the reform and opening policy issued,China's financial and economic growth have begun to grow rapidly.Especially after China's accession to the World Trade Organization,China's economic growth and financial development have made remarkable achievements.However,our country's current financial system is becoming more and more large and our country is experiencing the transitional period of economic structure under the New Normal.It is very important to deepen the financial reform so that the financial industry can better serve the real economy.Under such a transition and development node,what are the new changes and characteristics of the relationship between financial development and economic growth?In the essay we read the full reference of the existing theories of economic growth at home and abroad,the theory of financial development,use empirical analysis with the panel data of 31 provinces in China from 2004 to 2015 to deeply study and analysis the correlation between financial development and economic growth.combining Hausman test and Robust Test.At the same time,we conduct an analysis and test on the eastern,central,western and northeastern regions of our country in order to have a deeper understanding of the related role of the current financial development and economic growth.The research results are as follows: First of all,at present,the expansion of China's financial development scale and financial deepening have a significant inhibitory effect on economic growth.The simple increase of financial deepening has a negative correlation with economic growth.Secondly,the government's public finance expenditure,fixed asset investment scale and per capita level of education and employment can significantly promote economic growth,but the increase of real interest rate will significantly restrain economic growth.At present,China's foreign trade has no significant effect on the economic growth in our country.At the end we give several suggestions to our financial reform:(1)improving the financial development structure and promoting the development of the capital market;(2)improving the operational efficiency of the banking industry;(3)implementing differentiated financial development policies;and(4)enhancing the environmental conditions for financial development and encouraging financial innovation.