Empirical Research on Rural Residential Construction of Financial System
Based on the annual national data from 1978 to 2010, this thesis applies the EVIEWS5.0 software into the empirical research on how. The research shows that the investments on residential construction in China’s rural areas have long-standing and obvious effect on financial system. VEC model suggests that the changes of investment in the first lag are proportional to the stability of finance, while the influence is inversing in the second lag but not prominent, the two are influenced by each other in the short-term Granger causality. Impulse response function indicates that the current investments on China’s rural residential construction have inversing effects on financial stability. Variance decomposition displays that currently China’s rural financial system mainly depends on financial system itself to maintain it stable; otherwise the residential construction in rural areas has no proper effect.
KeywordsFinancial stability index VEC model Impulse response function
This work is supported by Northeast Forestry University Graduate Student Technology Innovation Fund, and Supported by the Fundamental Research Funds for the Central Universities (DL09BC01), and supported by the Fundamental Research Funds for the Central Universities (DL11CC12), and supported by Youth Fund of Social Science Planning Project of Heilongjiang Province (10CC002).
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