The Impact Of Financial Development On China's Economic Growth Quality

The development of anything is the unity of structure,speed,quality and scale,all of which are indispensable.Financial development and the development of quality of economic growth should be both faster and larger scale,but also have high-efficiency structure and high-quality.In the process of economic development in china,it has ignored the quality of economic growth for a long time in pursuit of speed and scale as its goal.Meanwhile,In the process of the development of modern economy and society,finance has played more important role on them,which has become one of the key factors to promote the sustained growth of economic quality.However,scholars at home and abroad mainly pay much attention to the effect of financial development on economic growth.Few scholars study the relationship between financial development and economic quality and construct the theoretical framework of the effect of the former on the latter.This thesis firstly reviews the literature on the relationship between financial development and economic growth and the relationship between financial development and the quality of economic growth.According to financial restraint theory and the theory of financial constraints,and on the basis of defining the concept of financial development and economic quality and theoretically analyzing the financial development affecting the quality of economic growth,it constructs the theoretical framework of the effect of financial development on the quality of economic growth and finally determines research ideas and methods of this thesis.This paper uses the provincial panel data of the last decade,divides the financial development into financial development scale and financial development structure,and uses the system GMM estimation method to test the effect of financial development on the quality of economic growth and its various parts.The empirical results show that: first,the scale of financial development has a significant negative impact on the quality of economic growth whose dimensions such as economic growth efficiency,economic growth structure,economic growth stability,economic growth welfare distribution and economic growth environment cost,but has a positiveeffect on national economic quality of economic growth.Second,the financial development structure has a significant effect on the quality of economic growth.Although it has a negative effect on the stability of economic growth and the distribution of economic growth welfare,it has positive effects on national economic quality of economic growth,economic growth efficiency,economic growth structure and economic growth environment cost.According to the empirical results of control variables,it has found that the upgrading of industrial structure is conducive to improving the quality of economic growth.The scale control by the government has negative effect on the quality of economic growth.The degree of the opening to the outside world has negative effect on the quality of economic growth due to imperfect domestic system.According to the conclusion of the study,it is suggested that the government should change the concept of economic development like concerning the speed but ignoring the quality and meanwhile should deepen financial market reform,and vigorously build and improve the social credit system to promote the optimization and upgrading of financial development and fully play a role of the positive effects of financial development on economic growth.