Financial Development And Economic Growth Under The Background Of Internet Finance

As an innovative financial model,internet finance has developed rapidly as soon as it emerged.However,after a certain period of development,some problems accumulated by internet finance have gradually emerged,which not only have an impact on China's financial system,but also on the uncertainty of the impact on economic development.In this context,exploring the influence relationship between internet finance,financial development and economic growth has great practical significance for promoting the healthy development of China's internet finance and realizing the stable growth of China's economy.This paper mainly studies and analyzes both theoretical and empirical aspects.Firstly,it theoretically explores the relationship between internet finance and financial development,financial development and economic growth,and internet finance and economic growth.Secondly,it examines the mechanism of internet finance's role in financial development,the mechanism of financial development on economic growth,and internet finance.The mechanism of economic growth;again,using the monthly data of relevant indicators for 2011-2017,respectively construct the TVP-VAR model of internet finance and financial development,financial development and economic growth,and internet finance and economic growth,combining dynamic and static The angle analysis analyzes the impulse response relationship between different lag periods and specific time points.The research in this paper shows that the emergence and development of internet finance has promoted the overall improvement of China's financial development level,mainly because internet finance has expanded the scale of financial development,improved the efficiency of financial development and optimized the market structure;The improvement of the level of financial development has promoted the growth of China's economy,mainly because the expansion of financial scale and the improvement of efficiency will have a positive impact on economic growth,and the unreasonable market structure will inhibit the growth of China's economy;Under the background of Internet finance,financial development will promote the growth of China's economy.Its mechanism of action is similar to the mechanism of action of the two in the context of traditional finance,but its promotion effect is stronger.Finally,based on the analysis of the influence mechanism between the three and the empirical results,combined with the development status of China,the paper puts forward relevant policy recommendations from five aspects: strengthening theindependent research and development of computer core technology and improving the credit system of Internet finance.