Author(s)

Yu Bai, Dehong Liu and Rizwan Ullah

Corresponding Author

Yu Bai

ABSTRACT

This paper studies the impact of social financing scale on real economy by using panel data vector autoregression model with the economic data of China’s social financing scale from 2008 to 2017.The research shows that the scale of social financing has a short-term negative effect on economic development at the initial stage but then subsequently turns positive in later years, and its impact on economic development has a two-year lag period. Further analysis shows that the real economy has the same effect on the scale of social financing, that is, the scale of social financing is the financial performance of the development of the real economy.

KEYWORDS

Social financing scale; Real economy; Panel data vector autoregression