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The Relationship between Economic Growth and Financial Development

  • Hongli ShenEmail author
  • Hao Jin
Part of the Advances in Intelligent Systems and Computing book series (volume 136)

Abstract

By using co-integration test and error correction model, conducting analysis on the financial development and economic growth in China from1978 to 2010.The results show that there is a co-integration relationship between the economic growth and financial development scale and financial agency efficiency, and based on these, the corresponding error correction model is established. Finally, corresponding counter-measures and suggestions are put forward as follows: speeding up the financial reform and the innovation, improving the disposition efficiency of financial resources and optimizing the financial structure.

Keywords

Financial Development Economic Growth Co-integration Test Error Correction Model 

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Copyright information

© Springer-Verlag GmbH Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.School of ManagementHebei University of TechnologyTianjinP.R. China

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