Advances in Management and Applied Economics

Research on the Impact of Financial Structure on Economic Growth

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• Abstract

   

  Financial support for economic growth is an important lever for developing countries to enhance their international competitiveness. This article selected provincial panel data from 31 provinces in China from 2006 to 2022. Research the impact mechanism of financial structure on economic growth from both linear and nonlinear perspectives. The linear research results indicate that market-oriented financial structures can effectively promote economic growth and have a robust impact. The non-linear research results indicate that the impact of market-oriented financial structures on economic growth is influenced by the non-linear effects of the capital market and labor market. Specifically, with the improvement of the allocation efficiency of the capital market and labor market, the promoting effect of market-oriented financial structure on economic growth shows a first strengthening and then weakening effect.

   

  Keywords: Financial structure, Economic growth, Linear influence, Nonlinear effects.