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)


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.


Financial Development Economic Growth Co-integration Test Error Correction Model 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Sun, G.: The analysis and innovation on the relation development between finance and economic growth. The Finance and Economics Problem Study 12, 15–18 (2005)Google Scholar
  2. 2.
    Acemonlu, D., Johnson, S., Robinson, J.A.: The colonial origins of comparative development: empirical investment. American Economic Review 91, 1369–1386 (2001)CrossRefGoogle Scholar
  3. 3.
    Tian, J.-H.: The empirical analysis on Chinese financial development’s influence on economic growth [The master’s paper]. Jiangxi University of Finance & Economics, Nanchang (2006)Google Scholar
  4. 4.
    Shuo, Z., Goldsmith, R.W.: Financial structure and financial development. The press of Shanghai people, Shanghai (1994)Google Scholar
  5. 5.
    Levine, R., Zervos: Stock Markets Banks, and Economic Growth. American Economic Review 88, 59–67 (1998)Google Scholar
  6. 6.
    Philip, A., Panicos: Financial Development and Economic Growth: Assessing the Evidence. Economic Journal 107, 89–102 (1997)Google Scholar
  7. 7.
    Wang, J.: Financial Development and Economic Growth with financial controlling policies. Economic Study 10, 95–104 (2007)Google Scholar
  8. 8.
    Du, Y.: Analysis of financial development and economic growth based on panel data. Economist 12, 21–22 (2010)Google Scholar
  9. 9.
    Li, S.: Financial deepening and economic growth. Theoretical Exploration 12, 3–7 (2010)Google Scholar
  10. 10.
    Xie, Y.-X.: The empirical method summary of financial development and economic growth. Nankai Economic Study 1, 19–27 (2003)Google Scholar
  11. 11.
    Sun, L.-J.: Finance and Economic. The press of high education, Beijing (2004)Google Scholar
  12. 12.
    Wang, X., Feng, W.: Macro effects of RMB exchange rate appreciation. Statistical Research 26, 3–12 (2009)Google Scholar
  13. 13.
    Zhang, J., Sun, X.: A Study on chinese resident savings deposits using Error Correction Model. The Journal of quantitative and Technical Economics 4, 129–138 (2009)Google Scholar
  14. 14.
    Yang, L., Hu, X.: Financial development scale, efficiency improvement and economic growth. Economic Science 1, 38–48 (2011)Google Scholar

Copyright information

© Springer-Verlag GmbH Berlin Heidelberg 2012

Authors and Affiliations

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

Personalised recommendations