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Research on Economic Growth Efficiency and Influencing Factors of Financial Service Entities Based on Nonlinear Model

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DOI: 10.23977/gebm.2019.045


Yanqiang Cheng

Corresponding Author

Yanqiang Cheng


For a long time, the correlation between financial development and economic growth has been one of the most important issues in economic theory and empirical research. Based on the panel data of several provinces from 2014 to 2018 and taking financialization index as the threshold variable, a panel threshold model is constructed to test the nonlinear effect and phase characteristics of financialization on real economic growth. The results show that the total factor productivity of China's financial services real economic growth shows a downward trend on the whole, which is mainly caused by the combined effect of efficiency changes and the synchronous decline of technological progress, and is dominated by the decline of technological efficiency. Financialization has a positive external effect on real economic growth within a reasonable threshold. Beyond the reasonable threshold, there is negative externality. In addition, the non-linear effect of financialization on real economic growth presents distinct phased characteristics, and there is a "threshold effect" between the two in the boom period and the recession period. Therefore, to improve the efficiency of real economic growth in financial services, we must focus on the development of financial industry, innovation of financial services, reform of financial system and optimization of external environment.


Financialization, Real economy, Nonlinear effect, Economic growth efficiency

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