| Since the reform and opening up,China’s financial development has also embarked on a new journey,and the financial market has undergone tremendous changes from scratch and from small to large,and the fluctuations and changes in China’s economic development have also intensified with the growing financial market.In addition,in recent years,China has put forward new requirements for high-quality economic development,and the emergence of new requirements has led academics to pay attention to the impact of financial development on high-quality economic development.This paper focuses on the impact of China’s financial development on high-quality economic development,using 2004-2019 as the sample interval,selecting monthly data of M2/GDP,inter-bank lending rate,national housing boom index,foreign exchange reserves,real effective exchange rate,and SSE composite index,and fitting the financial condition index through FA-VAR model in order to make a multidimensional and more detailed measurement of China’s financial development.This paper also selects quarterly data of the same period,including seven indicators of GDP,cumulative contribution rate of tertiary industry,chemical oxygen demand emission,urban residents’ disposable income,foreign direct investment,export price index,and invention patent authorization,and uses the principal component analysis method to construct the index of high-quality economic development,and extracts three principal components named as: economic development intensity component,economic development rationalization component,and economic development outward orientation component.The three components were named as: economic development intensity component,economic development rationalization component and economic development externality component.Subsequently,an empirical study on the relationship between China’s financial development and economic quality development based on mixed frequency data was conducted on the two constructed indexes.The analysis of the impulse response function results concludes that: the smooth operation of China’s financial market will have a positive effect on China’s economic development intensity and economic development rationalization,but will not promote economic development externality;in addition,the expansion of the financial market will not have a positive effect on China’s economic development intensity,but will be beneficial to economic development rationalization and economic development externality.This paper consists of five chapters.The first chapter is an account of the significance of the selected topic and the background of the selected topic in traditional literature studies,and provides an overview of financial development,quality economic development,and the relationship between financial development and economic development.In the second chapter,we choose the FA-VAR model to construct the financial status index,and verify the validity of the index by corresponding with financial events;in the third chapter,we choose the principal component analysis to construct the index of China’s economic quality development,and extract Finally,Chapter 5summarizes the research results of the previous chapters and proposes suggestions for the economic phenomena shown in the research results. |
