Study on the Relationship between Financial Development and Economic Growth

DOI

10.2991/edmi-19.2019.29How to use a DOI?

Keywords

Financial Development, Economic Growth, Multiple Equilibrium.

Abstract

Judging from the existing research on the relationship between financial development and economic growth, most of the research is “supply-guided” in terms of methods. Few people study the problem from the perspective of what kind of financial development is needed in economic growth. This paper measures the development of indirect finance by the variables of the bank, measures the development of direct finance by the variables of the stock market, and compares the causal relationship between the development of financial intermediation in economic development, stock market development and GDP growth. This paper puts forward a theoretical framework for the analysis of financial development from the perspective of economic growth. The endogenous growth model in economic growth theory endogenous knowledge innovation and human capital on the basis of Solow model, better explain the problem of capital marginal return does not decline. The conclusion of this paper is consistent with the basic situation of our country in the transition from a transitional economy to a mature market economy, and provides strong support for both the supply-led hypothesis and the demand-compliance hypothesis.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Yanqiang Cheng
PY  - 2019/08
DA  - 2019/08
TI  - Study on the Relationship between Financial Development and Economic Growth
BT  - Proceedings of the 1st International Symposium on Economic Development and Management Innovation (EDMI 2019)
PB  - Atlantis Press
SP  - 191
EP  - 195
SN  - 2352-5428
UR  - https://doi.org/10.2991/edmi-19.2019.29
DO  - 10.2991/edmi-19.2019.29
ID  - Cheng2019/08
ER  -