大鹏e1.docx
- 文档编号:3849489
- 上传时间:2023-05-06
- 格式:DOCX
- 页数:14
- 大小:497.47KB
大鹏e1.docx
《大鹏e1.docx》由会员分享,可在线阅读,更多相关《大鹏e1.docx(14页珍藏版)》请在冰点文库上搜索。
大鹏e1
FinancialDevelopmentandEconomicGrowth
Subject:
Macroeconomicconvergence,financialdevelopmentandeconomicgrowth
University:
BangorUniversity
Course:
ASB4903
Studentnumber:
500223666
Name:
DapengLi
Wordcount:
2969
Introduction:
Foralongtime,thetheoryoftherelationshipbetweenfinancialdevelopmentandeconomicgrowthhasbeenoneofthehotofacademicresearch.Financialdevelopmentasthecoreofeconomicgrowth,itsimportancehasbeenrecognizedbythemajorityofscholars.Financialdevelopmentincludethegrowthoftotalfinancialassets,suchasdevelopmentoffinancialassets,developmentoffinancialinstitutions,developmentoffinancialmarket,andtheimprovementandoptimizationoffinancialstructure.Andeconomicgrowthreferstotheentitieseconomicdevelopment,suchastheincreasesofGDPandGNP,theadvancesinmanufacturingtechnology,theoptimizationofeconomicstructureandtheperfectofeconomicsystemperfect.Thereasonofeconomicgrowthisthatthewaytorealizeeconomicgrowthanditsinternalmechanisms,bothofthemhasalwaysbeenthecoreproblem.Scholarstoexploreintherelationshipbetweenthefinancialandeconomic---Whoisthedrivingfactor,andthencontinuetodebatewhatkindoffinancialstructureismoresuitableforlong-termstableeconomicgrowth.Theeconomistsmakealotofresearchontheoryandpracticeoffinancialdevelopmentandeconomicgrowththeory
Body:
Overviewofeconomicgrowththeory
1.Classicalgrowththeory
TherepresentativesofclassicalgrowththeoryareAdam.Smith,David.Ricardo,Young.ClassicaltheoryofeconomicgrowthismainlybasedonAdam.Smith’sdiscussion(1957).Theybelievethatonlypartoftheactivitiescanproducesurplusavailableforinvestment,andeconomicgrowthdependsonthesharetoinvestment.
2.Newgrowththeory
Romer(1986)andLucas(1988)proposedanewgrowththeory,thereasontopromoteeconomicgrowthforalongtimeisthatnewbusinessandnewproducts,ratherthancapitalaccumulation.(Grabowski,R.&Self,S.&Shields,M.P,1949)BasuandWeil(BasuandWeil1998)thoughtthatthelowcapitalstockofdevelopingcountriesistheobstacletouseofdevelopedcountries’advancedtechnology.Ifdevelopingcountriescanincreasethesavingratetouseadvancedtechnology,itispossibletoexperienceaperiodofrapideconomicgrowth.
Overviewoffinancialdevelopmenttheory
Raymond.Goldsmithproposedatheoryoffinancialdevelopment,mainlyinthreeaspects:
1.acountry'sexistingfinancialinstrumentsandfinancialinstitutionsconstitutethecountry'sfinancialstructure,financialdevelopmentisthechangeoffinancialstructure.2.Nationalfinancialstructureandeconomicdevelopmentindifferentcountriesaredifferent,buttheyhavethesamepathoffinancialdevelopmentandinitsdevelopmentprocess,financial-relatedrateshavecertainregularity.3.Thefinancialstructurehasapositiveeffectoneconomicgrowth,themorekindsoffinancialstructureandfinancialassets,thestrongerpenetrationineconomic,theeconomiccandevelopfaster.
McKinnonandShaw'stheoryoffinancialdeepening,theybelievetherightwaytofinancialreformshouldbetorelaxthecontrolofvariousfinancialinstitutionsindevelopedcountries,topracticefinancialliberalization,toformabalancedmarketinterestrates,therebyincreasingsavingsandinvestmentrates,andthuspromoteeconomicdevelopment.(Caprio,G.&HonohanP2001)
Thelatestrelationshipbetweenfinancialdevelopmentandeconomicgrowth
Levine(1996)considereconomicstructureisdifferentindifferenteconomicdevelopment,byexamining50countries’financialintermediariesfrom1970to1993.
WangZhaoxing(1991)proposedChina'sfinancialstructuretheorythatisthemoderncommodityeconomy;thefinancialstructurehasbecomeaprerequisiteforadjustmenteconomicstructure,acertainfinancialstructureshouldbeformedfirstandthenformthecorrespondingeconomicstructure.
Thetheoreticalanalysisofrelationshipbetweenfinancialdevelopmentandeconomicgrowth
Theanalysisoffinancialimpacteconomicgrowth
Economistsaregenerallyconcernedaboutthephysicalaspectsofeconomicgrowth;almostallexpoundtherelationshipbetweentheactualvariableswhichcapitalaccumulation,laborforcegrowthandtechnologicalprogressandnationalincomegrowth,butlittleattentiontotheroleofmonetaryfactorsineconomicgrowth.
Marca.Paganousingthemostendogenousgrowthmodel---AID,itmoreclearlyexplaintheeffectivemechanismoffinancialdevelopmentoneconomicgrowth.(Marca.Pagano,1993)
Assumethattotaloutputisalinearfunctionofthetotalcapital:
Y=AK(2.1)
Assumethatpopulationsizeisstaticandunchanging;theeconomyproducesonlyoneproduct,andtheproductsareusedforinvestmentorspending.Ifforinvestment,thetotalinvestment:
It+1-(1-δ)Kt(2.2)
WhenthetotalsavingsSequaltothetotalinvestment,thecapitalmarkettoreachequilibrium.Theleak:
Θ×St=It(2.3)
gt+1isthegrowthrateoft+1,availablefrom(2.1),gt+1=Yt+1/Yt-I=Kt+1/Kt-I.Thenwecangettheequilibriumrateofeconomicgrowthwith(2.2)(2.3):
g=(A×I)/Y-δ=AΘs-δ(2.4)
Assumethatthesavingsrates=St/Yt
From2.4wecanseethatinfinancialdevelopment,theallocationoffinancialresourceswillaffecttherateΘwhichsavingstransformtoinvestment,themarginalproductivityofcapitalA,ortheprivatesavingsratestoinfluencetheeconomicgrowthrateg.Wediscussinthreebasicways.
1.Financialdevelopmentleadtoahigherproportionofsavingstransformtoinvestment,topromoteeconomicgrowth.
Theprimaryfunctionofthefinancialsystemistransformthesavingtoinvestment,fundamentallyspeaking,andthecapitalcomesfromresidents’savings,thefinancialsystemneedtoabsorbpartofresourcesduringtheprocessoftransformmanyscatteredresidents’savingstoinvestment.
Thefinancialsectormakesthehighefficiencyofresourceallocationbecauseofthefulldevelopmentoffinancialinstitutions,awell-developedoffinancialmarkets,andthegradualrelaxationofgovernmentregulation,thusimprovestheΘin2.4andincreasestheeconomicgrowthrateg.
2.Financialdevelopmentimprovetheefficiencyofcapitalallocation,
GreenwoodandJovanovic(1990)linkedtheinformationroleofthefinancialintermediationandtheimprovedofcapitalproductivity.Thedifferenceisthatfinancialintermediariescanchoosethemostsuitabletechnologyinvestmentprojectstoinvestmentthanindividualinvestors,therebyenhancingtheefficiencyofcapitalallocation,andthusbringhigheconomicgrowth.
GoldandLevin(KingandLevine,1993),intheirendogenousgrowthmodels,theythoughtthatfinancialintermediariesassesstheinvestmentprojectandselectthemostefficientprojects.Becauseoftheexistenceofbank,peoplecanholdmoreilliquidassets;becauseofalongproductioncycle,theinvestorsmayappearunexpectedliquidityneeds.Iftherearenofinancialintermediaries,investorshadtopostponeinvestmentinthefutureorturningthepreviousinvestmentsintocash,whiletheexistenceoffinancialintermediariestoavoidthispotentialorrealloss,improvetheefficiencyofinvestment.
Levin((Levien,1991)believedthatinadditiontobanksandotherfinancialintermediaries,investorscanalsospreadriskthroughfinancialmarkets.Investorsreducetherisksofstockportfolio’suncertaintythroughthestockportfolio.Therefore,thestockmarketcanimproveinvestmentefficiencyandeconomicgrowth.
3.Financialdevelopmentaffectingthesavingsrate,economicgrowthfluctuateswiththat.
Financialdevelopmentalsoinfluenceeconomicgrowththroughchangingthesavingsrate---s,inthiscase,therelationshipbetweenfinancialdevelopmentandeconomicgrowthisuncertain,becausefinancialdevelopmentcanincreasethesavingsrateorreducethesavingsrate.
Theanalysisofeconomicimpactfinancialdevelopment
GreenwoodandSmith(GreenwoodandSmith,1997),Levine(Levine,1993)expoundsintheirmodels,duetotheexistenceofthefixedtransactioncostsandfixedentercosts,financialintermediariesandfinancialmarketsdevelopwiththegrowthofpercapitaincomeandpercapitawealth.Witheconomicdevelopment,duetotheexpansionofinvestmentcapitalandfiercecompetitionbetweenfinancialintermediaries,resultingareduceoffixedcostsandunitcosts,whichcaninspireindividualstoactivelyparticipateinfinancialactivities.
Theformationandoperationoffinancialintermediariesandfinancialmarketsrequirescosts,withthefurthereconomicdevelopment,moreandmorepeopleinvolvedinfinancialactivities,thefinancialsystemhasagreaterdevelopment.Thesimplefinancialsystemwillbecometoacomplexfinancialsystemwiththegrowthofpercapitaincomeandwealth,individualneedthecomplexfinancialsystem,becausemarginalrevenueisgreaterthanmarginalcost.
Theinteractionbetweeneconomicgrowthandfinancialdevelopment.
Financialdevelopmenthaveanimportantroleonaccumulationofsavings,effectiveconversionoftheinvestmentandtheimproveofproductionefficiency;thesearepreciselythefactorsofeconomicgrowth.
ByLevine(Levine1997)classification,financehasfivebasicfunctions:
1.Easytocontrolthetrading,avoidance,dispersionandconcentrationofrisk;2.theallocationofresources;3.tooverseethemanagersandpromotingcorporategovernance;4.tomobilizesavings;5.tofacilitatetheexchangeofgoodsandservices.Infact,eachfunctioncanpromotecapitalaccumulationandtechnologicalinnovation,thusaffectingeconomicgrowth.
TheEmpiricalAnalysisofFinancialDevelopmentandEconomicGrowth
Asusedherein,theGDP,thedepositandloand
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- e1