Economic growth and fluctuations：based on financial development and diversity inproduction(PDF)
《长安大学学报（社科版）》[ISSN:1671-6248/CN:61-1391/C]
- Issue:
- 2019年05期
- Page:
- 20-35
- Research Field:
- 国际经济与贸易
- Publishing date:
Info
- Title:
- Economic growth and fluctuations：based on financial development and diversity inproduction
- Author(s):
- WU Lichao1; LIN Lan1; ZHANG Xiaoqian1; LIU Lili2
- 1. School of International Economics and Business，Xiamen University，Xiamen 361005，Fujian，China；2. Hanqing Advanced Institute of Economics and Finance，Renmin University of China，Beijing 100872，China
- Keywords:
- economic fluctuation; economic growth; financial development; diversification in production; Archinmean model; financial service system
- PACS:
- F061.2
- DOI:
- -
- Abstract:
- In view of the regional or global economic fluctuations caused time after time by the financial crisis in recent years，combined with the historical background of the global industrial restructuring and the accelerated adjustment of the industrial chain layout，this paper attempts to use the panel data of 160 countries from 2000 to 2014 and the Archinmean model to examine once again the relationship between economic growth and economic fluctuations from the perspective of financial development and production diversity. Research results show that economic fluctuations have a significantly negative impact on growth; financial development （including both financial intermediaries and stock markets） could not only promote economic growth directly，but also weaken the negative impact of economic fluctuations on growth，indirectly facilitating economic growth，and this effect is more prominent in economies with low economic development level or rather simplex industrial structure. Research further holds that diversification of national production structure can promote economic growth directly and also indirectly by mitigating the adverse effects of volatility on the economy，but the promoting effect of such diversification on economic growth exhibits marginal diminishing effect. Last but not least，good institutions can enhance the positive effect of financial development on economic growth. Therefore，the Chinese government should further improve the banking system，speed up the construction of the financial service system，steadily eliminate backward production capacity，attach importance to the optimization and upgrading of the industrial structure，and adhere to robust and standardized reform to provide a healthy soft environment for economic growth.
Last Update: 2019-11-07