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Web of Proceedings - Francis Academic Press

An Empirical Study of the Relationship between Financial Business Change and Economic Growth

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DOI: 10.25236/icemeet.2019.370

Author(s)

Zhou Wei

Corresponding Author

Zhou Wei

Abstract

The global financial crisis has led to a recession in the real economy, which has once again led to research on the financial system and the relationship between structure and economy. In recent years, with the continuous advancement of financial reforms, China's financial market has gradually improved, financial institutions have become increasingly diverse, and innovative financial products and tools have emerged. In this context, China's financial aggregates continue to expand, and the financial structure has undergone profound changes, especially the rapid growth of direct financing, which has made the regional financing structure more diversified, and the three financing methods of bank credit, stocks and bonds have gradually become "three pillars". Based on the theoretical and empirical research results of economic growth, this paper explores the mechanism of interaction between financial development and economic growth. Using annual time series data, it constructs a suitable measure of financial development and economic growth, and uses measurement. The economic method explores the causal relationship between financial development and economic growth. The empirical analysis of the impact of financial development on economic growth and economic efficiency is proposed to promote financial marketization reform, improve capital market construction, improve the financing environment of non-state-owned economy, and encourage financial innovation.

Keywords

Financial format, Economic growth, Financial deepening, Economic efficiency